Quiet before the storm to buy physical silver?
The precious metals are quiet yet again this morning as a lack of major headlines has kept all four in tight ranges. Gold has had less than a $10 range overnight, while silver has not even moved 40 cents. After two big up days for the euro on the heels of Spain maintaining its investment grade rating from Moody’s, the currency continues to consolidate so far today above 1.31. It will look to form a base around this area before trying to take out the double top from mid-September at 1.317. In the wake of the Moody’s news in regards to Spain, investors came in buying 10-year Spanish bonds which pushed the Iberian country’s borrowing costs to the lowest yield in more than six months.
Also in overnight news, Chinese GDP was released and was in line with expectations. Industrial and investment production data came in marginally higher than originally anticipated. China’s Premier Wen reported that the Chinese economy is in relatively good shape and he sees the target growth of 7.5% as feasible. Gold is in a consolidative state with the broader range defined between support at $1,730 and resistance at $1,790 and then $1,800.
