Daily Market Report 3/11/13

GOLD

Gold has traded in a very narrow $8 per ounce price range this morning. The tug of war in the Gold pit continues (see my Weekly Market Report for 3/11 for more details) and Gold is building a strong base. At 11am PDT Today, Gold is trading at $1,579 per ounce, up $1.40 per ounce on average volume. 

Physical Demand for Gold is Growing Worldwide

Since a new Japanese government took over at the end of 2012, and brought in their own monetary policy, the value of the yen has fallen on international exchanges on concerns of major stimulus programs coming. As a result, Japan’s citizens are dumping their yen and are buying Gold at a record pace. An ounce of Gold is selling for 145,000 yen up from 125,000 last July. In early February, it was at a record high of 155,000 yen ($1,614.58). In two years, the price of Gold rose 36%.

Japan is just one example — Gold prices hit new highs recently in places like Brazil, Iceland and India. And in Argentina, the precious metal is up 45% in the past two years, hitting record highs there recently, too.

SILVER

Silver is still trading above and below $29 per ounce with excellent support at $28.70 and resistances at $29.15. At 11am PDT Today, Silver is at $28.98 per ounce, unchanged from Friday close.