Daily Gold Update

Source: Dana Samuelson, American Gold Exchange

Austin, TX— Gold, silver, platinum and palladium all moved solidly higher again today during the New York trading session. Yesterday gold and platinum closed over their 200-day moving averages and palladium did so today. While silver has not yet closed above its 200-day moving average it traded over its 200-day moving average during the New York session today. All four metals are now clearly in technical break out mode. The combination of the higher prospects of further Fed easing combined with the potential for mining problems in South Africa to spread beyond the beleaguered Lonmin mine continued to propel all metals higher today. Gold is now up for the sixth straight trading session, silver is up in six of the last seven, platinum has gained for eight consecutive trading sessions and palladium is up in seven of the last eight. Further gains are a distinct possibility but it would not be unexpected to see some profit taking in the short-term. Meanwhile the U.S. dollar index declined again today modestly.

After trading as high as $1677.50, December gold closed the New York session at $1,672.80, up $32.80 or almost 2% from yesterdays close. September silver surged to as high as $30.79 before closing at $30.448, up $0.878 or almost 3% on the day. An hour before the close silver was trading at $30.70, above its 200-day moving average at $30.51.Obvioulsy some traders took some short term profits during the last hour of trading, and why not? Silver has surged 15% in the last seven trading sessions. October platinum gained $27.40, closing in New York at $1,554.00, up 1.8% from yesterdays close. And Palladium followed suit, surging $27.89 higher, closing the New York session at $657.39, up 4.4% from yesterday.

The U.S. dollar index declined modestly from yesterday�s low of 81.42, trading as low as 81.22 today before closing at 81.355. While the metals are all enjoying four month highs, the dollar is now testing its two month low of 81.16. A break below 81.16 on the U.S. dollar index chart will signal further strong weakness which could take the dollar back down below 80 on the index chart. This is where the dollar traded in early May before the latest Euro crisis propelled a flight to safety into the dollar, pushing it to its July 25th high of 84.10 on the index chart. Metals declined as a result. Now the dollar is declining and metals are rising again.