Daily Market Update 5/16/11

| May 16 2011

GOLD
Gold closed at $1,494.80 an ounce today, up $0.60, today on normal trading volume. The overnight markets showed support based on a weaker dollar, ranging from a low $1,486 to a high of $1,505. Demand for physical Gold is very strong with the U.S. Mint reporting sales of 85,000 ounces of American Gold Eagles since May 1.

The on-going fight in Congress over raising the U.S. Debt Ceiling is a major issue that will affect the Gold price. However, with Congress being slow to act (surprise) this issue is dominating all legislative activity, and the potential for a U.S. debt default is the talk of the media.

Robin Griffiths predicts Silver will surge to $450 an ounce and Gold to $12,000 due to the debasement of paper currencies. Mr. Griffith is a highly respected commodity analyst. He was chief technical strategist with HSBC for over 20 years and has 44 years of investment experience. Mr. Griffith now works for Cazenove Capital, one of the oldest investment houses in the world tracing its origins back to the 17th century. It manages money on behalf of blue-blooded clients and is widely believed to manage some of the British Royal family’s wealth. See full story at http://www.mintstategold.com/investor-education/gold_silver_surge/

SILVER
Silver was down $1.04 today, closing at $34.26 an ounce. Trading has been active and today’s trading ranged from a low of $33.47 to a $35.47 high. We are seeing an ongoing war between bulls and bears in the World’s Silver markets. Hopefully, Silver will stay in the narrow trading range from $32 to $37 for a while, building a base for future up moves.

Today’s Other Important News

Eurozone finance ministers are likely at a meeting scheduled for today to back a bailout package for Portugal and pressure Greece to announce more austerity steps to secure further emergency funding.
In news this morning, an advisor to the People’s Bank of China (PBoC) said he expected 2011 core inflation to come in at 4.2-4.3 percent, above Beijing’s target of four percent, according to the Wall Street Journal. The latest CPI reading last week for April showed growth of 5.3 percent, down from 5.4 percent previously.

For many of my clients and friends who are Gold & Silver addicts, I am also posting market news and developments on Twitter.