Daily Market Update 9/29/11

GOLD

The primary mover in the Gold market for the past few weeks has been the Eurozone debt crisis and the concerns about banking or sovereign debt default. Now, one of the biggest hurdles to the debt problem and economic recovery of the Eurozone was cleared this morning as the  German Parliament voted to Expand the Euro-Zone Bailout Fund.  Gold traded as low as $1,585 before seeing buyers show up, taking the market back to the $1,635 range. At 11am PDT gold is up $11 per ounce, at $1,617.40 in active trading. The $1,600 price needs to become a support level for Gold to form a new trading range.

SILVER

In very active trading, Silver is trying to stay above $30 per ounce. Last night, Silver hit a low of $29.10 before sizeable buying appeared to drive the price to $31.20 before any serious selling appeared.  Right now, at 11am PDT silver is trading at $30.42 per ounce, up $0.30 on heavy volume.  I would like to see Silver stay above $30 an ounce at least till Monday’s close to feel comfortable with establishing that level as resistance.