Daily Market Report 4/18/16

GOLD

Gold and Silver held well in the face of a sizeable drop in the Oil market today. Gold has traded in a narrow trading range between $1,230 and $1,240 per ounce.

Tomorrow, China will launch a Yuan-denominated Gold fix on the Shanghai Gold Exchange, just one more step in China’s move to replace the U.S. Dollar as the world’s preferred reserve currency for Central banks. China will join 18 others, including 2 foreign banks, on a benchmark-setting event. This is the biggest step China has taken to become a price-setter for the price of Gold. China will launch a Yuan-denominated 1 kilo Gold contract, which is traded on the state-run Shanghai Gold Exchange.

At 11am PDT today, Gold is trading at $1,234 per ounce, unchanged from Friday’s price on average volume.

SILVER

Silver has shown excellent support above the key $16 per ounce level today. Demand continues to grow after an 18% increase this year. At 11am PDT today, Silver is up $16.25, down $0.03 per ounce on excellent volume.