Daily Market Report 3/21/13

GOLD
After Gold trading ended in New York yesterday, the Federal Reserve made an announcement that it would stick to its stimulus plan, and keep its federal funds rate target unchanged at a record low range of 0 to 0.25%. This is good news for Gold in the long-term, as the Fed believes that the economy will see some moderate growth.

Today, Gold prices rose to their highest in nearly a month as professionals cover short positions after seeing Gold stay above the key $1,600 resistance level for the past three trading days. Jitters over the debt crisis in Cyprus added additional support and investment interest in precious metals. At 11am PDT today, Gold is at $1,615 per ounce, up $7 on good volume.
 
GOLD CONSUMPTION IN INDIA TO INCREASE IN 2013
The World Gold Council (WGC) reported today that rising incomes and inflation in India has boost investment demand for Gold, which surged consumption by 41% to 261.9 tons in the quarter ended December from a year earlier. Demand for jewelry rose 35%, while investment in coins and bars jumped 51%. The WGC stated that India’s consumption may total 960 metric tons of gold this year, compared with 864.2 tons in 2012.
 
SILVER
Finally, I am seeing strong demand for Silver at the current price levels. Silver traded as low as $28.70 in overnight trading and then sizeable buying came in and took the price up to $29.36 before seeing short term profit taking.  At 11am PDT today, Silver is up $0.40 per ounce, trading at $29.20 per ounce on good volume.