Daily Market Report 2/4/13

GOLD

Gold opened higher in Asia this morning as the price traded in a tight high/low range of only $14 per ounce. Trading volume should drop later this week as China approaches a week-long Lunar New Year holiday starting this Saturday. Gold has short term resistances at $1,680, and long term resistances at $1,700 per ounce, I believe both of these will be surpassed this month. At 11am PDT today, Gold is trading at $1,674 per ounce, up $3 per ounce on normal volume.

Swiss Bankers are Pushing Gold

Swiss bankers are selling a new safe-haven idea to the rich and mighty from India and other countries -- special accounts for holding Gold bars in the safety of their cash vaults. Amid a global crackdown against alleged illicit wealth in secret accounts of Swiss banks, these new Gold special accounts offer safety from the snooping eyes of regulators and tax authorities from the home countries of the rich foreign clients of banks operating from Switzerland.

SILVER

Silver is having a difficult time breaking above the $32 per ounce resistance level. It reached $31.94 this morning and quickly sold off. With Gold, Platinum and Palladium all higher today, Silver is the only precious metal on the downside. I believe it needs to shake out a major seller, while consolidating a little more in the $31.50 to $31.80 price area. At 11am PDT today, Silver is down $0.18, trading at $31.72 per ounce on average volume

PLATINUM & PALLADIUM

Platinum rose to $1,713 and Palladium to $760 per ounce, its highest level in nearly four months, drawing support from the U.S. data. Platinum and Palladium benefit when the economic outlook improves as they are widely used in industrial applications, as well as jewelry.