Daily Market Report 02/13/12

Financial and Precious Metal markets are the focus this week regarding the ongoing European debt crisis as Greek officials struggled with the aftermath of Sunday’s approved but hugely controversial new austerity laws.  These measures were required by the Troika in order for the debt laden country to receive the next tranche of €130 billion bailout funds from the European Union and IMF. These funds are needed ahead of next month’s deadline when some €14 billion in bond redemptions and paybacks are due. However as debt talks stalled last week, more and more investors and major institutions have now started to factor in a possible euro-Greek decoupling as a flurry of rumors continued to circulate throughout the week. Widespread demonstrations across Athens turned violent over the weekend as a general protest saw thousands take to the streets setting fires in opposition to the strict austerity measures. Greeks were spotted burning German flags in an obvious act of rebellion against German led ECU fiscal demands. We are seeing many Greeks (who are concerned about the future of the Greek economy) withdrawing their savings from Greek banks and buying British Gold sovereigns, a traditional way to protect the value of their savings.

GOLD

As the above Greece news broke over the weekend gold traded from a low of $1,714 to $1,731 per ounce.  The volume of trading in the Asia and European markets wasn’t substantial. At 11am PST Gold is trading at $1,723 per ounce, up $4.30 on average volume.  Last night CBS’s 60 Minutes show had an educational story on why India, the largest holders of gold, is in love with Gold. If you missed it, I have provided the following link to the story. http://www.cbsnews.com/8301-18560_162-57376057/precious-metal-indias-love-affair-with-gold/?tag=contentMain;cbsCarousel

SILVER 

At 11am PST, Silver is trading at $33.66 per ounce, up $0.12 with normal trading volume. Silver continues to hold it $33 support level and $34 resistance level.