Daily Market Report 1/29/13

GOLD

Substantial physical Gold demand from bargain buyers in Asia rallied the market early this morning. As we approach the Chinese New Year we should see increasing physical demand in Asia. An additional bullish factor for Gold is that the China Securities Regulatory Commission (CSRC) issued a provisional proposal for Gold ETFs on January 25th. 

Gold investors are waiting to see if the Federal Reserve makes any announcement on Wednesday about its monetary policy following their two-day meeting. Most economists do not expect the Fed to curtail its bond-buying program any time soon, but any hint that the central bank is considering it would be negative for Gold.

At 11am PDT today, Gold is up $6.60 per ounce, trading actively at $1,661.60 per ounce.

SILVER

The U.S. Mint started to take orders for the 2013 1oz Silver Eagles again yesterday on a limited allocation basis. In a 24-hour period, the Mint sold over 1 million coins, making the total sold, as of January 28th, 7,130,000 Silver Eagles, an all-time record. Physical Silver demand is increasing domestically and internationally. At 11am PDT today, Silver is trading at $31.28 per ounce, up $0.42 per ounce on heavy volume.