Daily Market Update 10/21/11

GOLD

At 11am PDT, Gold is up $24.40, trading at $1,635.50 per ounce on typical weekend volume. As concerns over the Eurozone debt problems continue into this weekend, the safe haven status of gold lifted the price today. Gold is also benefiting from substantial buying in India and China as well as central bank purchase, particularly among non-developed economies that are seeking to cut their dependence on the U.S. dollar. "Emerging-market central banks have been active buyers of gold recently and are likely to increase gold holdings in the future as a means of diversifying away from the U.S. dollar," HSBC analyst James Steel said in a client note.

SILVER

The Silver price continues to show more strength and support then Gold in recent trading. Very heavy demand from the Asian markets is causing shortages of physical supplies. The United States Mint’s 1oz Silver Eagle sales have reached an all-time record in excess of 36 million coins, and we still have over two months to go. At 11am PDT, Silver is trading at $31.20 per ounce, up $0.84 on normal volume.

Other Important news that affects precious metal prices:

Credit agency Standard & Poor’s said yesterday, that sovereign rates on France, Italy, Spain, Ireland and Portugal could be slashed as the cost of borrowing increases.

The U.S. Labor Department stated on Thursday that applications for unemployment benefits fell by 6,000 to 403,000 last week.