Daily Market Report 03/27/14

GOLD

Gold hit a six-week low today, breaking below $1,300 an ounce for the first time since mid-February, as speculation that U.S. rates would rise sooner than expected. Easing tensions over Ukraine pushed prices through key chart levels. The trading volume in the U.S. Gold commodity market hit the highest quantity of 100oz Gold contracts this month. At 11am PDT today, Gold is trading at $1,295, down $9 per ounce on very high volume.

The market hasn’t yet focused on increasing worldwide physical demand for Gold. The International Monetary Fund reported that Russia has increased its Gold holdings by 7.247 tonnes to 1,042 tonnes in February. Turkey and Kazakhstan also raised their bullion reserves. Turkey’s Gold holdings rose 9.292 tonnes to 497.869 tonnes. More and More Central banks are running away from the U.S. Dollar and moving into Gold.

The following is 2013 Worldwide central bank demand for Gold:

SILVER

Silver followed Gold’s decline, reaching a low of $19.57 per ounce before sizeable buying appeared. At 11am PDT today, Silver is down $0.11 per ounce, trading at $19.70 per ounce on heavy trading volume.