Daily Market Update 6/30/11

GOLD

Gold was trading at $1,506.60 at 11am PDT today, down $1.90 an ounce on average trading volume. Gold tested the important $1,500 price level again today, hitting $1,500.60 this morning. I believe the heavy demand for gold at this level means the downside risk for gold has become limited, while the fundamental issues that make Gold’s upside look robust continue to grow.

One of those fundamental issues is the roll of gold in an economy faced with austerity problems, like Greece. Please read the following article that provides insight to that statement.   www.mintstategold.com/investor-education/gold_teeth/

Comex Gold increased a net speculative gain of 54.4 tonnes, with the net position now standing at 767.7 tonnes. The increase was due to a rise of 68.5 tonnes in speculative longs, with only a small increase of 14.1 tonnes in speculative shorts

SILVER

Silver is up $0.12 at 11am PDT, trading at $34.88 per ounce. Trading volume was light due to the long holiday weekend starting tomorrow.  Silver seems to have excellent support in the $33 - $34 price range. Demand picks up in Asia as Silver reaches the lower end of the $33 to $38 trading range. Like gold, I believe the downside risk in Silver is limited at the current price and making purchases at the lower end of the trading range is recommended.

Platinum and Palladium News

A strike threat by South Africa’s National Union of Mineworkers at state utility Eskom - in protest against a lack of consultation with the union - could affect domestic production of the platinum group metals.

Japanese car production and exports in May, although lower than in the same month of 2010, rose from April, according to the Japan Automobile Manufacturers Association (Jama). Japanese automobile production in May was 489,723 units, 68% higher than in April, when just 292,001 vehicles were produced 

Today’s Other Important News:

Today the U.S. government reported that 428,000 people filed new applications for unemployment benefits last week, down 1,000 from the prior week. Economists surveyed by Market Watch had expected initial claims to fall to a seasonally adjusted 425,000 in the week ended June 25. Initial claims from two weeks ago were unrevised at 429,000.

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]