Daily Market Update 5/11/11

GOLD
Gold closed down $10.40 an ounce closing at $1,505.20, showing excellent support and buying at the $1,500.00 area. In the face of an 8% decrease in the Silver price today, gold was down less than 1%.

There was bullish news today on gold. Hal Lehr, Deutsche Bank’s managing director for cross-commodity trading, said in an interview in Buenos Aires that Gold could reach US$2,000 an ounce in the next eight months. CLICK HERE TO READ ARTICLE

Also, Forbes predicts U.S. Gold Standard within 5 Years CLICK HERE TO READ ARTICLE

It’s clear that the volatility of Silver is giving direction to all the precious metals. Gold continues to be the strongest of all the precious metals with the best fundamentals.

SILVER
Silver closed at $35.42, down $3.16 for the day on heavy volume due to an extraordinarily strong Dollar rally. The U.S. Dollar moved sharply higher, reaching $1.41 against the Euro over concerns about a Greek Debt default. Silver opened down on news of April consumer price inflation in China rising to 5.3% year to year, still higher than government projections of 4%. Silver was hit again when the Comex temporarily halted trading in the energy futures, as Crude Oil dropped the daily limit. Silver reached $39.47 in overnight trading, then the China, Greek and Comex news was released. Hopefully, Silver will hold support at $35 an ounce, however if it doesn’t, $33 is highly possible.

For many of my clients and friends who are Gold & Silver addicts, I am now posting on Twitter multiple times during the day and night.