Daily Market Report 1/27/14

GOLD

Gold opened higher in Asia this morning, breaking above the $1,270 per ounce resistance level, based on news that the largest one-day withdrawal of physical COMEX Gold in over a year happened last week. The JPMorgan (JPM) warehouse withdrew a stunning 321,500 ounces of gold (10 tonnes). Additionally, we also saw a large withdrawal from the Scotia Mocatta warehouse, which brings the total withdrawal for the week to almost 5% of all COMEX Gold stocks. Speculation is this Gold is heading to China and other Asian countries.

Physical demand for Gold bullion investment coins is soaring as the Austrian Mint reports that it is running 24 hours a day to meet orders for Gold coins. The Austrian Mint joins its counterparts from the US, UK and Australia who are reporting accelerating demand.

The Austrian Director of the mint has hired extra employees and added a third eight-hour shift to the day in a bid to keep up with demand. Purchases of bullion coins at Australia’s Perth Mint rose 20% this year through January 20 from a year earlier. Gold Eagle and Buffalo sales by the US Mint are set for the best month since April 2013.

At 11am PDT today, Gold is trading at $1,261.50, down $4.50 per ounce on good volume.

SILVER

This morning Silver is hovering in the $19.70 to $19.95 per ounce, after briefly trading above the key $20 per ounce resistance level. At 11am PDT today, Silver is down $0.08 per ounce, trading at $19.72 per ounce on average volume.