Gold & Silver Daily Market Recap: September 4th, 2012

Spot gold pushed close $1700 as poor U.S data revived hopes of further Quantitative easing. Last week Fed Chairman Ben Bernanke left QE3 on the table as an option to jump start a sluggish economy.

U.S data was on the disappointing side this morning as Manufacturing PMI came in at 51.5 vs. a forecast of 51.9, the ISM PMI which is closely watched fell below to 49.6 vs. a forecast of 50. July construction spending was down 0.9% as analysts were looking for .4%. All this gave traders the on again feeling for QE3. The main rally started in European trade Monday as volumes were light and gave way to higher values. The metal flirted with $1700 as the North American session open up and the poor data was released. Wall Street reopened after a long weekend, with indexes broadly lower as they reacted to the negative U.S data.

"Gold is finding strong resistance on approach of $1,700 with the market keen to sell on approach of this $1,700 level. This level should remain strong resistance ahead of the ECB meeting on Thursday. A stronger euro and weaker dollar could see gold move above $1,700" said Standard Bank

Now traders turn their attention to the European Central Bank meetings taking place September 6th.  President Draghi is expected to reveal details of a bond-buying program aimed at capping peripheral yields, but don't hold your breath as he was suppose to announce this a few weeks ago.

Expect volatility to reign supreme this week as markets remain poised to follow the cues of the Eurozone.  Gold should flirt with $1700 and may well trade over, but don't expect much buying to come in until after Thursday and Friday. The all important US non-farm payroll report is on Friday to cap a busy week.

Spot silver continues to outperform as it has rallied more than 12% in the past few weeks. It hit yet another multi month high of $32.40 following the disappointing U.S data. The gold silver ratio moved lower for the 5th straight day and 51.50 remains a target.


  Gold Silver
Support $1640/$1600 $29.91/$29.00
Resistance $1690/$1684 $31.50/$32.50


September 4th Closing Prices

Gold $1654
Silver $30.37
Platinum $1503
Palladium $615




  • United States Mint
  • Royal Canadian Mint
  • The Perth Mint Australia
  • Johnson Matthey
  • A-Mark Precious Metals, Inc.
  • Laurentian Bank
  • Engelhard
  • Brinks

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