Daily Market Update 9/19/11

GOLD

At 11am PDT, Gold is trading at $1,777.90, down $35.60 per ounce on heavy volume.

This weekend has raised concerns for Greece since their hope to raise additional funds from either fellow European Countries, the IMF, or China, have not been successful. And with estimates showing Greece will run out of cash in October the deadline is fast approaching. This has traders concerned about investing in the Euro, and has them running to a "Safe Haven". Currently the battle for the ’safe haven’ is between the US Dollar and Gold. However, with today’s news of the Obama Jobs Plan we have seen a temporary increase in belief in the Dollar over Gold. To us this shows an interesting advantage to add to our positions. Plus, in this market many other countries in addition to the BRICS have decided to add to their positions which include Mexico, South Korea, and Thailand, which is very bullish in the long run for gold.

SILVER

Silver is down today $1.42 per ounce at 11am PDT, trading at $39.34 per ounce with high trading volume. Silver has again followed Gold’s lead today, as would be expected. We want to see silver stabilize before we add to our positions. After having gained 5.3% in the month of August there was bound to be some short term profit taking.