Daily Market Report 03/02/12

GOLD

Gold trading today has been very lackluster with a narrow price range.  Gold’s high/low range in Asia, Europe and the U.S. trading has been $1718/$1703.  Gold is finding excellent demand at the $1,700 resistance level. The Chinese love a bargain and sales of physical gold were very strong. At 11am PST, Gold is trading at $1,710.70, down $8.80 per ounce in light weekend type volume.

ECB is Bailing out Europe’s Problem Banks

Roughly 800 banks borrowed 529 Billion Euros ($700 Billion) from the European Central Bank (ECB) in the second round of the LTRO (Long Term Refinancing Operation) which offers lenders 3 year loans at an interest rate of just 1 %. The total take up for the second LTRO was originally expected to be 500 Billion Euros. The first LTRO last December saw 523 banks tap 489 Billion Euros of ECB loans.

This morning, 25 of 27 European Countries – The UK and Czech Republic abstained – signed a new fiscal compact intended to put tighter controls on soaring Eurozone debt.   Two countries - Spain and the Netherlands - already face fines because of their growing budget deficits.

SILVER

Silver didn’t hold the $35 per ounce support level in overnight Asian, European and U.S. trading. Trading in the past 24 hours has ranged from $34.25 on the low to $35.16 on the high.

At 11am PST, Silver is down $0.78, trading at $34.68 per ounce on light weekend trading.