Daily Market Report 9/12/12

GOLD

Since last Friday’s $35 increase, breaking through the important $1,700 resistance level and closing the week at $1,738, Gold has been consolidating its gain. The first two days of this week and today, Gold has shown amazing support at above $1,725 per ounce. The fact that Gold did not decline and test the $1,700 level is very impressive. At 11am PST Gold is trading at $1,732.40 per ounce, down $1.10 on heavy volume.

Moody’s Warns on US Credit Rating

The US could lose its top credit rating status if policy makers fail to agree on measures to reduce the country’s debt to GDP ratio next year, Moody’s Investors Service warned on Tuesday. Budget negotiations during the 2013 congressional legislative session “will likely determine the direction of the US government’s Aaa rating,” Moody’s said, adding that if talks fail to produce stabilization followed by a downward trend in the ratio of federal debt, it may cut the country’s rating to Aa1.

SILVER

Silver has been even more impressive than Gold, breaking above $33 per ounce on Friday with a Dollar increase. Silver did drop below the $33 dollar range today, but quickly came back on some strong buying. And that continues to support $33 as a new support level. However, everyone is waiting for the FOMC policy statement due late today or tomorrow. At 11am PST Silver is trading at $33.33 per ounce, down $0.25 on high volume.