Daily Market Report 3/19/13

GOLD

Up up and away for Gold as it tested the $1,600 price level this morning and held. After watching today’s Gold trading, I believe that the $1,600 price level has turned from a resistances level into a support level. Many of the professional commodity traders I speak with have turned bullish on Gold and are now aggressively buying on dips. However, a few traders have concerns about any statement coming from the Federal Reserve two day meeting that started today.  At 11am PDT today, Gold is trading up $7.20, at $1,612.70 per ounce on excellent volume.

Cyprus’s bailout conditions drive investors to the only real safe haven, GOLD

A controversial decision over last weekend by the ECB to force all savers in Cyprus Banks to contribute to a €10bn ($12.9 Billion) bailout package by removing up to 10% of their deposits has caused havoc in many of the world’s financial centers. All Cyprus’s banks were ordered to stay closed this week to avoid a bank run, as the government delayed for the second day running a parliamentary vote on the deal struck with Eurozone officials and the International Monetary Fund.

A senior EU official said international lenders were pushing the Cypriot government to exempt all deposit holders below €100,000. Instead, the IMF, the EU and the European Central Bank wanted a levy of 15.6% on all deposits above that level, many of which are held by Russians.

Why is this event having such a dramatic effect on the World’s financial markets, considering that the Cyprus economy is equal to only .2% of Europe’s total GDP? There is a deep concern by investors around the world that this proposed action may be a harbinger of things to come in other Euro zone countries.

Arizona lawmakers back Gold, Silver as legal tender

Arizona’s legislators have passed legislation that declares privately minted Gold and Silver coins legal tender, no different under state law than the U.S. dollar printed by the federal Department of Treasury. Read the complete article at http://www.mintstategold.com/investor-education/az_lawmakers_back_gold_silver_currency/

SILVER

Silver is having a very difficult time staying above the $29 per ounce level. Considering today’s rally in Gold it is very disappointing not seeing better demand and a stronger upward move for Silver. Silver has traded between $28.57 and $29.23 today, and at 11am PDT today, it is at $28.94 per ounce, up $0.04 per ounce. 

PLATINUM & PALLADIUM

Both Platinum and Palladium sold off today. Rumors and a possible new deal between the mine workers union and management of the leading South African Platinum mining companies are negative for the price.  Platinum is off $25 at $1,553 and Palladium is down $32 at $731 at 11am today.