By Barry Stuppler – MintStateGold.com
Gold breaking through the $1,600 level today shows the amazing strength in the market, especially considering that we are in July, an historically flat month. However, the ongoing Euro Debt issues and the Debt ceiling problems in Washington DC are driving investors into Gold as the ultimate safe haven. At 11am PDT gold is trading at $1,603.80, up $12.00 an ounce on very active trading. The next technical resistance level for Gold is $1,648.00.
On July 14th, the World Gold Council released their 2nd quarter report. This informative report stated that the total central banks’ net purchases of Gold year-to-date have already surpassed the level seen in the whole of 2010. Emerging markets, banks continue to be the main driving force, led this quarter by Mexico’s 100-tonne increase in its reserves. Physical gold delivery at the Shanghai Gold Exchange was over 205 tonnes between April and June, around 26 tonnes higher than the same period last year. This represented a 14.6% increase in year-on-year tonnage, a strong performance especially considering that Q2 is not the traditional peak season for buying in China.
Silver is off and running… after building back the base over the past six weeks, Silver has broken out of the trading range and is now above $40. Silver, at 11am PDT time today is trading up $1.27 per ounce, at $40.25 on large volume. Many technical analysts covered short positions this morning and went long Silver, as the next resistances level is at $41.07.
A very bullish article by Robin Bromby appeared in The Australian on July 15th. The article stated that demand from new technologies could increase physical demand for Silver by 6,600 metric tons over the next nine years. See The Australian article at www.mintstategold.com/investor-education/silver_soaring/
Today’s Weekly Precious Metal & Rare Coin Report provides an update on the rare coin market and comments on Federal Reserve Chairman Ben Bernanke statement about Gold not being Money. If you don’t currently receive these weekly market reports via email, please email [email protected] or visit our website http://www.mintstategold.com/investor-education/cat/markets/