Daily Market Update 9/21/11

GOLD

At 11am PDT, Gold is trading at $1,808.10, up $2.30 per ounce on light trading. The range is also fairly tight going from $1,784.30 on the low to $1,811.70 on the high.

Trading was fairly light as Asia opened today. After Federal Reserve Chairman Ben Bernanke spoke, he initiated "Operation Twist" and trading has picked up, but not substantially. In "Operation Twist" Mr. Bernanke announced that the central bank intends to do more than merely lengthen its balance sheet maturities. He also mentioned that they forecast unemployment rates to go down, but very gradually over time. In my opinion, the Federal Reserve has said repeatedly that it is willing to take risks and be very aggressive. Once they have more detail about the Obama Job Plan they will act more accordingly. It still is very possible at this current pace that Bernanke will announce a launch of QE3 (or some variation of it) in the near future.

SILVER

Silver is up today $0.78 per ounce at 11am PDT, trading at $40.62 per ounce with light trading volume. Silver has also had a fairly narrow trading range with a low of $39.76 and a high of $40.72. Silver keeps showing a strong base in the $40 range and this positions it very well for its next run to the mid $40’s. We will see this run shortly as additional global economic news in Europe and the US is released, and purchases of silver for the holidays gets underway.