Daily Market Report 9/24/12

GOLD

Gold prices fell early this morning in Asian trading. Talk that France and Germany are at odds as to when the currency zone should centralize banking supervision sent the precious metal falling amid profit taking. Germany is hoping to delay giving the European Central Bank more power to oversee the Eurozone’s financial institutions. Earlier this morning Gold dropped to $1,757 per ounce (above the $1,750 support level) before rallying back. 

What I expect to see for the Gold price is more consolidation for the next week or two, with Gold trading between $1,750 and $1,790 per ounce, building an excellent base for the next attempt to break above $1,790 and $1,800. At 11am PDT, Gold is down $13.20, trading at $1,764.20 per ounce.

CHINA IS BUYING MORE GOLD ASSETS

Venezuela and China signed an agreement Friday to develop together one of the world’s biggest Gold mines. It will take three to five years before we see any production and it will probably be just shipped to China and stay at Venezuela’s central bank.

SILVER

Silver sold off with Gold earlier today, reaching $33.60 per ounce at one point.  This is very normal during the consolidation phase of trading. At 11am PDT today, Silver is trading at $34.02 per ounce, down $0.60 per ounce on light volume.