Daily Market Report 3/6/13

GOLD

Gold is trading in the $1,566 to $1,584 per ounce range this morning in Asia, Europe, and the U.S. Many dealers in Asia reported an increasing demand for physical Gold/Silver bullion investment products, in contrast with exchange traded funds (ETFs) such as GLD, which continue to see selling. One precious metal analyst calls it a "tug of war" between physical buying and ETF selling. At 11am PDT today, Gold is trading at $1,575 per ounce, down $1 on average volume.

SOUTH KOREA BUYS 20 TONNES OF GOLD IN FEBRUARY

The South Korean Central Bank took advantage of the February Gold correction by adding 20 metric tons in February, raising their Gold reserves by 24% to 104.4 tons. South Korea’s Gold holdings increased $1.03 billion by value to $4.79 billion at the end of last month, equivalent to 1.5% of total foreign exchange holdings. The Seoul-based central bank’s latest purchases are its fifth round of buying since June 2011. Bullion reserves rose by 30 tons in 2012 and by 40 tons in 2011.

SILVER

Increasing investor demand for physical precious metals isn’t just for Gold, we are seeing that demand for Silver investment products as well; the U.S. Mint reports that 11,743,000 1oz .999 Silver Eagles have been sold as of March 5, 2013. At 11am PDT today, Silver is up $0.05 per ounce, trading at $28.75 on lower than average volume.