Daily Market Report 01/24/12

GOLD

Gold sold off from recent highs as talks on a Greek debt swap deal stalled late yesterday. Eurozone finance ministers rejected as insufficient, an offer made by private bondholders to help restructure Greece’s debts, sending negotiators back to the drawing board.

At 11am, Gold is trading at $1,668.60, down $8.90 per ounce with light trading.The Chinese Lunar New Year holiday meant activity in the world’s second largest consumer of gold was absent, while activity was muted in top consumer India, where import duties on gold were nearly doubled last week.

SILVER

We saw some profit taking in Silver today. After a 7% increase in the past two trading session today we see a 1.25% correction. At 11am PDT, Silver is down $0.41, trading at $32.07 per ounce with average volume.

Continued and increasing demand for 3-4 month Silver calls, with the focus at the $40 strike price - suggests that the market remains bullish on silvers.