Daily Gold Update

Source: Dana Samuelson, American Gold Exchange

Austin, TX— Gold, silver, platinum and palladium all moved smartly higher in early morning trading and then held most of those gains through out the New York trading session today. The Euro gained approximately 1% on increasing hopes the ECB would take steps to reduce borrowing costs for financially troubled Euro countries while the U.S. Dollar Index declined, falling through recent short-term support at 82 on the index chart. And a report Tuesday in the Chinese state-run Xinhua news agency's Economic Information Daily said Beijing was planning fresh economic stimulus for the second half of the year. This was viewed as supportive of gold by the markets.

December gold peaked at $1,643.60 in New York, its highest trading price since June 6th, before closing the session at $1,642.90, up $19.90 or 1.77% from yesterday�s close. September silver surged another $0.84, closing the session at $29.432, up 2.95% from yesterday�s close. October platinum gained $9.40 from yesterday, closing the session at $1,506.70, up 0.56%. And September palladium closed the New York session at $623.75, up $16.05, or 2.60% from yesterday. All four precious metals hit their highest price points since early June and are exhibiting signs of potential moves higher.

The most important metals related event is the dollar falling from yesterday�s close of 82.45, below short-term support of 82.00 on the U.S dollar index chart, to as low as 81.79 today before closing at 81.90. A declining dollar tends to buoy commodity prices, making them cheaper in other currencies. From May 1st thru July 25th the dollar has risen steadily from 78.60 to 84.10 on the U.S. dollar index chart in a flight to safety from the ongoing Euro crisis. Since peaking on July 25th at 84.10 the dollar has been weakening and today�s break below short-term support at 82.00 on the index chart signals that further weakness is possible, which would be beneficial for gold. Speculation that the ECB is considering capping bond yields of troubled Euro zone countries continues to ripple through the currency markets, helping to bolster the Euro and weaken the dollar in the short-term.