Daily Market Update 12/06/11

GOLD

Gold tested support this morning at $1,701 and quickly bounced off on excellent volume. Interpreting the news coming out of the EU meetings is difficult for economist let alone floor traders who are making quick trades. The latest proposed automatic sanctions and guidelines on troubled EU nations are not receiving overwhelming endorsement. With Standard & Poor’s rating service threatening to lower the credit ratings of 15 euro-zone nations it is not making any joint decisions easy. At 11am PDT, Gold is trading at $1726.40, on today’s high for CME trading.

SILVER

Silver hit $31.50 per ounce earlier today, but taking its lead from Gold rallied and at 11am PDT is trading at $32.74, up $0.52 for the day. There’s interesting news out of India, stating that the weak Rupee is causing a lackluster physical demand for silver. One week ago reports from retailers were saying they are seeing record demand for silver and gold.

PLATINUM

Finally we have some positive news about Platinum. The Platinum Guild stated that carmakers will use a record $7 billion worth of platinum in catalytic converters next year. Barclays Capital stated platinum will average $1,845 per ounce in the fourth quarter of 2012.