By Barry Stuppler – MintStateGold.com
Yesterday we saw our Federal Reserve Bank, along with five other major central banks, announce a coordinated move to boost the capacity to inject liquidity into the global financial system. These bilateral swaps to provide liquidity for other currencies make a strong statement by the U.S. in regard to eliminating credit risks with the Euro. After the joint announcement, the world’s equity, commodities, precious metal and bond markets soared, as the U.S. Dollar weakened. Today we saw gold reach $1,754 per ounce before seeing profit taking, at 11am PDT Gold is down $3.40, trading at $1743.70 per ounce with normal trading volume.
Silver traded up to $33.55 per ounce this morning as European government’s bonds rallied and interest rates fell. However, renewed concerns about recessionary data coming out of Europe and China caused selling at that point. Also, rumors of the Swiss Government going to a negative interest rate cause the dollar to strengthen. At 11am PDT, silver was trading at $32.75, down $0.07 per ounce on average volume. Silver to Gold Ratio is 53.06 to 1.