Daily Market Update 12/22/11

GOLD

Yesterday, the ECB allotted 489.19 billion euros ($643.1 8 billion) in the first round of its three-year bank loan program, which was much higher than the 293 billion in euros that investors had expected, but doesn’t solve the Sovereign Debt crisis. Gold has held above the psychological $1,600 level for the third day. Trading on the U.S. commodities exchanges is expected to be light as we approach the holidays. At 11am PDT Gold is trading at $1,605.30, down $8.10 per ounce on very light trading.

Russia’s central bank bought 100,000 ounces of gold in November, thus increasing its holdings to 28.1 million ounces or 873.9 tonnes.

SILVER

Again taking the lead from Gold, Silver is down $0.27, trading at $29.07 at 11am PDT. Asian trading briefly dropped below the $29 per ounce level, trading down to $28.90, but quickly recovered to above $29.

Other Important news that affects precious metal prices:

U.S. real gross domestic product for the third quarter was revised to an increase of 1.8% annualized, lower than earlier estimates of a 2.0% rise, the Commerce Department reported today.