Daily Market Update 5/31/11

GOLD
Gold closed up $2.50, at $1,536.60 an ounce, based on a weaker dollar and some hope of a temporary resolution of the Greek debt crisis. Germany is considering funding Greek debt in the near term which would allow the beleaguered nation to obtain IMF funding by June 29th. Today the Gold price was helped by the downgrade of Japanese debt by Moody’s.

This coming week, the raising of the U.S. $14.3 Trillion debt limit will be in the forefront of congressional actions

SILVER
Silver closed at $38.21, up $0.60 for the day on average volume. Silver prices are showing strength based on investor buying from Asia and a pickup in global industrial demand. Also, renewed focus by some analysts on the gold/silver ratio, currently at 40-to-1, is increasing domestic investment purchases. The best thing for silver is to stay in the nice tight $35 to $39 trading range for a month or so before making an attempt to break above an important resistance level of $40.

Quote of the Day

“There are so many fleas on that dog -- no one necessarily wants to hold dollars for longer than they have to.” Michael Woolfolk - senior currency strategist in New York for Bank of New York Mellon Corp., the world’s largest custodial bank, with more than $20 trillion in assets under administration

IMPORTANT NEWS THAT COULD LEAD TO QE3, WHICH IS BULLISH FOR PRECIOUS METALS

The prices of single-family homes in 20 major cities fell for the eighth straight month and confirmed that there is a double-dip in the housing market, according to the S&P/Case-Shiller home price index released Tuesday by Standard & Poor’s.
The Conference Board’s consumer-confidence index fell in May as Americans grew slightly more pessimistic about future job prospects and business conditions.

My 24 page research study on Hyperinflation is completed and now available. After three months of research I am proud to share the information with clients and friends. The title of the booklet is “U.S. Hyperinflation is Coming Soon, will Gold Confiscation or a Gold Standard be Far Behind?”

For a free copy of the booklet just email [email protected]

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