Daily Market Report 4/25/13

GOLD

Gold rallied this morning in the face of deceasing paper Gold holdings. The SPDR Gold ETF (GLD) reported that Gold storage dropped to 1,092.98 metric tonnes late yesterday, down 30 metric tonnes from last Friday, and the lowest level in over two years. This decline in investor stored Gold is being offset by the recent surge in global physical demand.

Today’s Gold rally retracted 50% of this month’s decline ($1,575 to $1,325) on heavy demand. At 10am PDT today, Gold is up $30 per ounce, trading at $1,455.20 per ounce on excellent volume.

Central Banks continue to buy Gold in March

The Russian Federation, the world’s 8th largest holder, lifted its Gold reserve for a fifth straight month in March, adding 4.7 tonnes of Gold to its reserves, which stood at 981.648 tonnes by the end of last month, IMF data showed. Turkey raised its holdings by 33 tonnes to 408.874 tonnes, and South Korea increased its holdings by 20 tonnes in February to 104 tonnes. I believe Central Bank Gold purchases in April will be substantially more than what was reported for March.

SILVER

Surprisingly, Silver tested support at $23.00 per ounce this morning and held. Helped by today’s Gold rally, Silver showed some investor demand this morning reaching $24.15 per ounce. Today’s Silver rally needs some confirmation in the next few days to be considered bullish.

At 10am PDT today, Silver is trading at $24.02 per ounce, up $1.06 per ounce on better than average volume.