Daily Market Update 03/28/12
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GOLD
Gold sold off today, at one point reaching $1,653 per ounce, after data showing a smaller-than-expected rise in February U.S. manufactured durable-goods orders lifted the dollar to session highs versus the euro. Disappointing news, as Economists had expected U.S. durable-goods orders to raise 2.9%. After yesterday’s attempt to break through the psychologically important $1,700 ceiling which proved to be unsuccessful, a decline back to $1,650 could be expected. At 11am PDT, Gold is trading at $1,659.20 per ounce, down $27.50 on light trading.
In a recent respected investors survey, Gold received the highest rating; 37% of American investors believe Gold is the best investment. What does this mean? 37% of the public believe that the value of their savings, denominated in Dollars, will not keep up with future inflation. When that number reaches 51% we will see gold prices well over $2000 per ounce, and then I would start to be concerned, because the public surveys on investment choices are normally wrong.
SILVER
Silver also sold off today at a larger percentage then Gold. Silver broke through the important $32 per ounce level earlier this morning, reaching $31.68 per ounce, before sizeable bargain buying appeared. At 11am PDT, Silver is down $0.65, trading at $32.65 per ounce on average volume. Again, if silver can close above the $32 an ounce support level It would be long term bullish.