Daily Market Report 1/23/13

GOLD

Gold is having a difficult time breaking through the $1,700 per ounce resistance level; however the price reaction to every attempt has been smaller and smaller.  Based on the large amount of support, I believe we will see a breakthrough of the $1,700 level within the next week. At 11am PDT Today, Gold is down $8.40 per ounce, trading at $1,686.70 per ounce on heavier than average volume.

INDIA RAISES GOLD IMPORT TAX

India raised its Gold import tax by 2% to 6%. Considering that imports of Gold is second in value to oil in India (one of the few, if not only, countries to have Gold imports be so high relative to other commodities), this new tariff is of particular interest. Gold demand has proven to be largely inflexible in India and it remains to be seen whether or not the government’s intention of reining in Gold demand is curbed with the new tariff increase.

STAND BANK REPORTS STRONG GOLD DEMAND FOR SOUTHEAST ASIA

Standard Bank reported today that physical Gold demand has been unusually strong for this time of year, with “good buying” from Southeast Asia.

SILVER

The strong physical demand for Silver isn’t just investment products and bullion, it is also for Silver jewelry. Read more in the attached article from the Silver Institute: http://www.mintstateGold.com/investor-education/strong_Silver_jewelry_sales_2012_holiday_season/ 

At 11am PDT today, Silver is trading at $32.32 per ounce, down $0.06 per ounce on average volume.