Daily Market Report 1/24/13

GOLD

Gold initially declined this morning after Morgan Stanley lowered its price prediction of Gold to an average of $1,773 per ounce for 2013. At one point today Gold’s most active CME contract reached $1,664 per ounce, just above the 200 day moving average and a Fibonacci retracement level of $1,661. This is a very important support level, with $1,700 per ounce being the resistance level. At 11am PDT today, Gold is down $19.70 per ounce, trading at $1,667 per ounce on very heavy volume.

DAVOS, January 24, 2013 (Reuters) - The Russian central bank will continue to buy Gold as it seeks to diversify its foreign reserves away from paper assets it views as risky, First Deputy Chairman Alexei Ulyukayev said on Thursday.

Morgan Stanley Bank Lowers Gold Price Prediction

Morgan Stanley expects Gold to average $1,773 an ounce this year, 4 percent less than an earlier forecast. Prices may gain to $1,845 in 2014.

SILVER

Silver reacted with Gold’s decline, reaching $31.57 per ounce before finding sizeable support and bargain buying. At 11am PDT today, Silver is trading at $31.68 per ounce, down $0.64 per ounce on heavy volume.