Both the euro and gold rose against the dollar; all precious metals saw significant gains.
(1888PressRelease) December 22, 2011 - MIAMI, FL - Precious metals rebounded strongly today, December 20, in light of more positive economic data both in the US and overseas, and a weakening dollar. The euro and gold both rose against the dollar as Europe pledged 150 billion euros to the IMF in an attempt to deal with the euro zone's debt crisis and the ECB increased its support for bonds. Spain and Greece were able to raise five billion euros and one billion euros, respectively, at auction, for lower cost and with increased demand.
With gold reaching $1615 an ounce, we may well see a prolonged recovery as this level should trigger buy stops and there is likely to be increased activity from bargain hunters, anxious to get back in the market before the price goes higher. All precious metals were trading significantly higher today with silver back within reach of $30, platinum up $12 to $1429 and palladium also up $12, representing a far larger gain, percentage wise, and taking it to $627an ounce.
"With gold reaching $1615, there is a good chance that this rally will continue," says Bill Hionas of Pan American Metals of Miami. "Palladium is also continuing to look very healthy. Supply and demand is working very much in palladium's favor at the moment."
Today's rally takes the price of gold back to the 200-day moving average that was breached previously; if gold is able to hold this level then there is considerable technical support.
Pan American Metals of Miami, LLC is a group of traders, investors and account executives that combines many years of experience to help clients invest in bullion. PAMM provides an individual investment service and is based in Miami, Florida for convenient access to both North and South American investors.