Daily Market Report 01/12/12

GOLD

Gold prices were up today partly because of lower borrowing costs for Spain and Italy which pushed the euro higher versus the U.S. Dollar, resulting in a rally for gold and silver. At 11am PDT, Gold is up $11.10, trading at $1,650.70 per ounce on excellent global exchange volume. $1,650 is a minor resistance level and if gold can stay above that price, the next step is $1,700.

Premiums for gold bullion coins and bars in Asia are rising again and are at their highest since October in Hong Kong and Singapore.  Bullion’s strength was also attributed to the euro’s 16 month low, with Fitch warning the ECB to purchase assets to try to stabilize the euro.  

A strong Indian rupee has boosted the purchasing power of gold bullion consumers in India.  This is in the run up for the Indian Wedding Season which resumes January 15th and continues until April, leaving a  few weeks break for a period that is considered bad luck for nuptials.  Chinese demand will weaken next week as many factories and businesses are set to close for the Lunar New Year’s celebrations.

Pimco’s Bill Gross just said that Central Banks are Printing Money like Gangbusters. Since Pimco, the world’s largest $244 Billion bond fund consults with many of the global Central Banks this statement is very bullish for precious metals.  See complete article at  http://www.mintstategold.com/investor-education/central_banks_print_money_like_gangbusters/

SILVER

Finally, Silver has broken out and closed above $30 per ounce on excellent volume of trading.  At 11at PDT, Silver is trading at $30.16 per ounce, up $0.22 on average volume of trading.

Physical demand for Silver investment products is turning the market sentiment bullish. The Mint sold 4.26 million ounces of the 1oz 2012 Silver Eagles to authorized purchasers Jan. 3 through Jan. 10. At this pace, full-month deliveries may reach 14.2 million ounces, more than twice the record 6.422 million ounces sold in January 2011.