Daily Market Report 1/15/13

GOLD

The price of Gold was helped late yesterday by Chairman Ben Bernanke’s speech at the Gerald R. Ford School of Public Policy at the University of Michigan wherein he reiterated that the U.S. economy still was not yet out of the woods. This means more quantitative easing is coming to stimulate the U.S. economy. Gold rallied today on a renewed Asian and European demand for precious metals. At 11at PDT today, Gold is at $1,682 per ounce up $14 per ounce on excellent volume.

Germany Wants its Gold Back

Germany’s Handelsblatt newspaper reported that the Bundesbank is expected to announce on today that it will repatriate its Gold reserves held in Paris and move back some which is currently in the New York Federal Reserve vaults. Nearly 3,400 tons or 45 percent of the Bundesbank’s reserves are held at the New York Fed, while the Bank of France has 11 percent and the German central bank’s headquarters in Frankfurt houses 31 percent. The Bank of England holds 13 percent.

Platinum Makes a Major Breakout

The world’s number one Platinum miner Anglo American Platinum (Amplats) announced today it has suspended production of Platinum and Palladium in four of its largest mines. This will cut Platinum output by 400,000 ounces a year, equal to almost 7 percent of total global production. Restructuring and labor issues have caused this decision. Platinum has rallied $30 per ounce today, driving the price to $1,683 per ounce, higher than price of Gold for the first time since April of 2012. 

SILVER

Silver’s recent price action has been very positive. After testing and reaching $30.94 in early Asian trading, Silver is holding above the $31 per ounce resistance level on excellent volume, turning it into a support level. At 11am PDT today, Silver is up $0.40, trading at $31.45 per ounce on above average volume.