Daily Market Update 11/29/11

GOLD

After bottoming out in Asia and Europe over the Thanksgiving weekend to $1,666 per ounce, gold rallied to $1,709 yesterday and is trading actively today. At 11am gold is trading at $1,715.10, up $5.30 per ounce in excellent volume. Based upon last week’s trading, the next resistance level to breakthrough is $1,722 per ounce.

SILVER

The price of silver is trading in a narrow range from $31.60 to $32.30 per ounce awaiting news from the Financial Minister in Belgium. Tonight Finance Ministers will hold initial talks on how the ECB can loan cash-strapped eurozone nations billions of Euros with help from the International Monetary Fund. At 11am silver is at $32.02 per ounce, down $0.18 in active trading. We are seeing major resistance at $32.60 and $33 per ounce.

Other Important news that affects precious metal prices:

Federal Reserve Vice Chairman Janet Yellen said today, "The scope remains to provide additional accommodation". In English this means she is calling for more quantitative easing for the U.S. economy.

The Conference Board reported today that consumer confidence jumped up to 56 in November, reaching the highest level since July, on improved expectations and views on the present economy. The index rose more than 15 points - the largest gain since 2003.

National chain store sales rose 2.2% in the first four weeks of November from October, according to Redbook Research’s latest indicator.