Daily Market Report 03/29/12

GOLD
Gold continued to lose ground in Europe and U.S. on Thursday morning on selling pressure caused by a stronger U.S. Dollar and lower crude oil prices, this while many macroeconomic indicators disappoint commodity traders. At one point this morning, gold dropped to $1,644 per ounce on light volume, than we saw many of the professional go long.  At 11am PDT, Gold is down $4.60 per ounce, trading at $1,654.60 on very active volume.

Mixed Opinion on the direction of the Gold price from Leading Financial Institutions
The price of gold, one of the most eagerly watched indicators of market confidence, is currently “too low” relative to real interest rates, according to commodities analysts at Goldman Sachs. The analysts forecast that gold will rise to $1,785 per ounce over the next 3 months, $1,840 over the next 6 months, and $1,940 over the next year.

Swiss bank UBS Thursday cut its 2012 full-year forecast for gold, citing a continued improvement in the global economic outlook, particularly in the U.S. UBS reduced its 2012 gold forecast by 18% to $1,680 a troy ounce. The bank had previously forecast the metal to average $2,050/oz this year. "A continuing U.S. recovery, material erosion in Fed quantitative easing expectations, rising Treasury yields, a stronger dollar and questions surrounding the durability of the Fed’s low-until-2014 rate pledge all combine to act as the prime culprits that cause us to pare back, for now, our previously aggressive call," said UBS analyst Edel Tully.

SILVER
It was fighting to get back above $32 per ounce all morning. The same news that affected Gold negatively caused silver to drop to $31.56 this morning, before the bargain buyers appeared. At 11am PDT, Silver is trading at $32.03, down $0.02 on heavy volume of trades.