Daily Market Report 1/30/13

GOLD

The US Commerce Department reported today that the US economy (GDP) unexpectedly reversed course in the final quarter of 2012, dropping 0.1 % in the fourth quarter of 2012, its worst performance since the financial crisis in 2009. Today’s GDP data assures that the Federal Reserve will continue its current economic stimulus programs and Gold rallied.

At 11am PDT today, Gold is trading at $1,679 per ounce, up $17.40 per ounce on excellent volume.

CENTRAL BANKS CONTINUE TO BUY GOLD IN DECEMBER

Russia’s Gold reserves rose 2.1% to 30.8 million troy ounces in December 2012. Its holdings increased by 8.7% over 2012, as the central bank added 2.4 million ounces to its Gold hoard.

Kazakhstan raised its bullion holdings by 1.7% to 3.7 million troy ounces in December 2012. Kazakhstan bought 1.1 million ounces over 2012, raising their bullion holdings by 41%.

Turkey posted the largest increase in Gold reserves--15% in December to 11.6 million ounces. Last year, the Turkish central bank began accepting bullion as a form of deposits from domestic banks, so some of the reported Gold reserves actually belong to domestic banks. Turkey’s bullion holdings rose 84% for the year.

SILVER

The Dept. of Commerce news of a decline in the fourth quarter U.S. GDP had a substantial effect on the price of Silver. After the announcement Silver immediately rallied almost $1 per ounce on heavy volume. At 11am PDT today, Silver is up $0.87 per ounce, trading at $32.15 (an important resistance level) on better than average volume.

Physical Demand for Silver Keeps Growing

India’s Gems and Jewelry Export Promotion Council said today that India’s Silver jewelry exports are expected to jump up to 30% this year as world demand picks up.

U.S. Mint sales have reached a record high of 7,420,000 one ounce Silver Eagles for January 2013, and we have two more days to go.