Daily Market Report 11/2/12

GOLD

Wow! A combination of Eurozone monetary problems in Greece and Spain, plus a higher-than-expected U.S. jobs report from the U.S. Labor Department has caused the U.S. Dollar to rally sharply versus the Euro and Gold has dropped almost $40 per ounce. The U.S. Labor Department reported today that payroll data showed employers added 171,000 jobs in October versus forecasts of 125,000, while the jobless rate met expectations at 7.9 percent.

Today Gold broke through the $1,700 per ounce support level and reached $1,675 per ounce on a very heavy volume of trading. This is a short term technical breakdown of support and many chartists sold into the market. At 11am PDT Today, Gold is trading at $1,678 per ounce, down $38.50 per ounce.

SILVER

Silver’s correction today was about 4.50% double that of Gold and is at a very attractive level. Silver opened lower and took price direction for Gold during the trading day. At 11am PDT Today, Silver is down $1.40 per ounce, trading at a $30.88 per ounce.