Daily Market Report 03/20/12

GOLD

Gold has consolidated between $1,630 and $1,670 during the past four trading days.  The risk remains on the downside, especially in light of a stronger U.S. Dollar caused by the Italian & Chinese headlines. At 11am PDT, Gold is trading at $1,647.60 per ounce, down $19.60 on sizeable volume.

The dollar has benefited from concerns in the market stemming from unsuccessful talks between Italy’s government and unions on the reforms needed to turn around the euro zone’s third-largest economy. Most of the world’s financial and commodity markets are down today, including equities, oil, and commodities alike are lower today on news of a slowing economy in China.  The deputy secretary of the China Association of Automobile Manufacturers’ said that total vehicle deliveries to China, which were forecast to grow by 8% this year, may fail to increase by even 5% due to the “difficult” economy.

SILVER

Silver wants to stay above the $32.00 support level. It’s been as low as $31.67 per ounce, but keeps bouncing back over $32.00.  At 11am PDT, Silver is down $0.90 per ounce, trading at $32.04 on excellent volume.