Daily Market Report 04/05/12

GOLD
Asian market buyers really like buying gold when the prices drop down into the low $1,600 price area. In overnight trading the Asian commodity markets saw an increase in volume as buyers aggressively purchased precious metals at the current attractive price levels. Speculation of a pending sovereign purchase of metric tonnage of gold also fueled demand. At 11am PDT, Gold is up $10.40 per ounce, trading at $1,628.20 per ounce

In the face of Tuesday’s Federal Reserve statement, which drove the gold prices down to $1,612 per ounce, Morgan Stanley forecasts that the gold prices will climb to $2175/oz by 2013 with prices depending on 4 bullish factors - decline in producer hedging, decline of developed market central bank sales, inability of gold mines to increase gold supplies materially and the long term growth in physical investment demand.

SILVER
Silver has shown numerous times that $31.00 per ounce has major long term buying support.  Last night Silver was driven down to $30.98 per ounce before major bargain buying appeared.  At 11am PDT, Silver is trading at $31.66 per ounce, up $0.43 on heavy volume of trading.