Daily Market Report 9/6/12

GOLD

Breaking through and staying above $1,700 per ounce is very bullish for Gold. This could be the last call for adding more Gold to your holdings at a reasonable price. Now we should pick up buying momentum with brief stops at $1,800 and $1,900 and we should see record highs within the next six months. 

Today, European Central Bank President Mario Draghi said the central bank would launch an "outright monetary transaction," or OMT, program in the secondary market, under strict conditionality. This would allow the ECB to decide when to start, continue or suspend bond buys, Draghi said. Today’s announcement is viewed as a crucial moment for global markets and Europe’s financial system. They may not wish to call this a bail out for political reasons but this would allow the ECB to start the long awaited major buy buying program (QE). Bearish for interest rates, but very bullish for equities and precious metals. Gold broke out above $1,700 per ounce on this news and at 11am PDT, Gold is trading at $1,704.40 on high volume. 

SILVER

If Gold stays above $1,700 per ounce, Silver could easily be $35 per ounce by year end. At 11am PST Silver is at $32.74 per ounce, up $0.37 on above average volume.

PLATINUM

October Platinum continued to climb higher this morning and has reached a new 4 1/2-month high. Labor strife in South Africa is widely seen as the main source of support for the market, although improving risk sentiment in front of today’s ECB meeting may have helped prices with maintaining an upward trajectory this week. While a major South African Platinum producer has put together an agreement to end violence at their mine, not all parties have signed onto it which could mean that the current strike could continue for a few more days. At 11am PST Platinum is trading at $1,591 per ounce, up $15.