Daily Market Report 4/12/16

GOLD

A combination of strong physical demand and a weak U.S. dollar has given good support to the Gold price today. The U.S. Dollar is down 5% versus the Euro and 10% versus the Japanese Yen in the past couple months. A report out of Asia today shows that China purchased 183 tonnes of Gold in March, and 515 tonnes for the 1st quarter of 2016. Central banks around the world continue to replace their U.S. Dollar reserves with physical Gold. After Gold’s recent rally from $1,206 on March 28th to $1,258 today, it would be healthy to see some price consolidation above $1,250 for a few days. At 11am PDT today, Gold is up $2, trading at $1,258 per ounce on excellent volume.

SILVER

Today, Silver hit $16.25, the highest price since Oct. 28, 2015. Since this is the third attempt to break above the key $16 per ounce resistance level, it is very important that Silver holds above $16 for the balance of this week. At 11am PDT today, Silver is trading at $16.14 per ounce, up $0.22 on excellent volume.