Gold Silver summary week July 30 2011

Gold Silver summary week July 30 2011 : In Asia, equity markets fell as gold hit a record high as optimism for a deal on the debt ceiling in the U.S. began to fade, as talks between the President and congress collapsed, with Democrats and Republicans moving from one proposal to another, with only 1 week to go for the deadline of August 2nd. China was the clear underperformer, tumbling 3% and posting its biggest percentage decline in 6-months, as rail stocks weighed down the overall market following the deadly train cash of a bullet train.

The early selling pressure eased, as plans for a debt ceiling increase from the Republican and Democratic leadership in congress emerged and participants focused on earnings; however the strength found after the early morning weakness waned as politicians continued with their bickering about the dueling plans.

And on the commodities front, gold finished higher by 0.7% to $1612.60 per ounce, while Sept silver gained 0.6% to end at $40.36 per ounce. Both metals rallied on the flight to safety. After gold traded to a new time high in the overnight session, the bullion was under pressure from there. Silver momentarily gave back all of its gains, trading into negative territory, but was able to bounce and close in positive territory.

Pan American Silver (NASDAQ:PAAS), the second largest primary silver producer in the world with operations in Argentina, Bolivia, Mexico, and Peru, tumbled 3.71% to $32.54 despite silver trading higher, as the stock was downgraded to a Hold from Buy at Cannacord Genuity.

In the precious metals trade, gold finished higher by 0.3% to $1617.20 per ounce, while Sept silver gained 1.1% to end at $40.80 per ounce. Both metals spent the majority of the session chopping around the unchanged line, but managed to trade into positive territory.