Daily Market Report 04/09/14

GOLD

Gold tested the $1,300 support level this morning, reaching $1,301 per ounce and holding. For the most part of today’s trading, Gold has been range bound from $1,305 to $1310 per ounce awaiting today’s Federal Reserve announcement.

Demand for Gold Driven by Ukraine and India news

Demand for Gold has increased substantially as Russia has heated up the conflict with Ukraine – pro-Russian separatists occupied government buildings in Eastern Ukraine while demanding a referendum on federalization. Putin is also banning agricultural goods from Ukraine, pushing up the natural gas price by a phenomenal 80%, and stepping up military pressure.

In India, the BJP’s prime ministerial candidate, Narendra Modi, who is strongly supported by India’s jewelry and bullion associations, will likely win the election, making the reduction of import duty on Gold more likely. He is widely believed to be able to push industrial reforms and more foreign direct investment into India, which bodes well for Indian wealth and therefore the demand for Gold.

At 11am PDT today, Gold is trading at $1,305 per ounce, down $4 on average volume.

SILVER

Silver couldn’t hold above the $20 per ounce level this morning. It did reach $20.13, but selling and professional short sales occurred. At 11am PDT today, Silver is down $0.25 per ounce, trading at $19.80 on average trading volume.