Daily Market Report 10/1/12

GOLD

Gold opened lower this morning due to a stronger U.S. Dollar versus the Euro on reports of Spain struggling to reach a solution to its debt problem. Then Charles Evans, the president of the Chicago Federal Reserve Bank, spoke on CNBC. He said, “The Federal Reserve’s third round of bond purchases will likely have to last through 2013 until it can achieve improvement in the labor market.” Gold rallied immediately after his statement, setting a new 2012 high Gold price of $1,793 per ounce, before we saw short term professional profit taking. At 11am PDT Today, Gold is up $7.60, trading at $1,779.80 per ounce on excellent volume.

Gold Mining Stocks Continue to Have Problems

Goldcorp (GG) announced Monday that it was stopping work at a Copper and Gold mine in Chile after its environmental permit was suspended.

SILVER

After Charles Evans’ statement, Silver rallied to $35.50 per ounce, the highest price since February of this year. Today’s Silver rally represents its fourth attempt to close above $35 per ounce, a key resistance level. I think the fifth attempt should be the charm. At 11am PDT Today, Silver is trading at $34.91 per ounce, up 39 cents per ounce on good volume.