Daily Market Report 4/17/13

GOLD

Physical demand for Gold is soaring in Asian & Middle Eastern markets, buying ranges from five to ten times normal levels. In the U.S. the Mint has as already sold 122,000 ounces of Gold as of April 16th, compare that to 20,000 ounces in the entire month of April 2012. Additionally, on Monday central banks purchased 1.8 million ounces of Gold. This confirms the huge demand for physical precious metals from central banks.

Today, I am seeing Gold consolidate, while building a new trading range, with short term support at $1,365 and short term resistance at $1,400 per ounce. At 11am PDT today, Gold is trading at $1,381 per ounce, down $4 on the day on excellent volume.

SILVER

Demand for Silver investment products continues to be very high. The U.S. Mint has sold 2,387,000 ounces of one ounce Silver Eagles as of April 16th, compared to 1,520,000 ounces in the entire month of April 2012. To date the U.S. Mint has sold 16,610,000 ounces of Silver eagles in 2013, an all-time record high pace, projected to be over 40,000,000 ounces for 2013.

Silver is showing excellent support around $23 per ounce, with resistance in the $23.77 per ounce level. At 11am PDT today, Silver is down $0.20, trading at $23.45 per ounce on average volume.