Daily Market Report 4/12/13

GOLD

This morning Gold fell along with other commodities as the dollar rose on a weak batch of U.S. data and as the psychological impact of potential selling of the precious metal from Cyprus continued to take its toll.  Rumors that Cyprus’s gold will be sold directly into the open market, rather than being used as collateral for the IMF and ECB loan, took a dramatic toll on the gold price by London’s 2nd fix. 

After gold broke down below $1,530, the selling volume picked up as many chartist and professional sold short with hopes of picking up $10 to $20 per ounce. The selling increased after rumors that the brokerage firm Merrill Lynch had sold 4 million ounces of gold on this morning’s COMEX open.

At 11am PDT today, Gold is trading at $1,503.00 per ounce, down $61.00 on extraordinarily high volume, especially for a Friday. Monday’s Asian trading is the key to whether the key $1,500 support level will hold. I would be surprised if Asian demand wasn’t very heavy.

SILVER

Silver, as well as Platinum, Palladium and Copper all were sold off today with gold. Silver broke down below the important $26 per ounce support level before rallying back on heavy demand and trading volume.  At 11am PDT today, Silver is down $1.35 per ounce, trading at $26.40 on high volume.