Daily Market Update 03/09/12

GOLD

With the Greek Debt issue in our rear view mirror, we now can continue our Gold rally.  The procedure by which the European Central Bank (ECB) and the IMF settled this issue is now the prototype for Italy, Spain, and Portugal as their debt problems go crucial. More important, we have gold trading above the physiological support/resistance $1,700 per ounce level. At 11am PST, Gold is trading at $1,710.40, up $14.60 per ounce on excellent volume for the Friday.

SILVER

Silver should benefit more from the settlement of the Greek debt issue, as deflation is behind us and Hyper-inflation is on the way within the next 12-18 months. Physical demand for silver in China and India continues to be heavy.  At 11am PST, Silver is up $0.40 per ounce, trading at $34.25 per ounce on average weekend volume.