Daily Market Report 04/23/12

GOLD
Gold declined today based on news of a stronger dollar versus the Euro, while global equity markets were down sharply. Although selling down to $1,622 per ounce early this morning, gold bounced back above $1,630 per ounce for most of the day. Considering the massive rally in the U.S. Dollar and the sizeable drops in the world’s stock and energy markets, gold surprisingly held up.  At 11am PDT, Gold is trading at $1,632.20 per ounce, down $9.90 per ounce from Friday’s close on excellent volume.

The gold buying festival is on in India tomorrow. Akshaya Tritiya, a day considered auspicious for buying the precious yellow metal has got both consumers and jewelers in a tizzy, with jewelers expecting a 25% increase in gold business in one single day, and consumers scrambling to make up their minds over the varied discounts that will be offered. Average gold sales during the last three years have been around 40 and 42 tonnes in one day. Akshaya Tritiya, which means `never diminishing’, falls on April 24 this year, and is considered to be one of the four most auspicious days to bring the precious metal home. This year, in a run up to the festival, retailers are offering unheard of discounts and promotional offers to lure customers.

SILVER
Silver was today’s major victim, with concerns about a global recession as the major catalyst. The strong U.S. Dollar also played a role in the $1.00 correction.  At 11am PDT, Silver is down $1.18 per ounces, trading at $30.62 per ounce on heavy trading.