Daily Market Report 04/27/12

GOLD
Gold has rallied today based on a slower U.S. GDP growth for the first quarter and another sovereign government increasing its monetary stimulus. The Bank of Japan announced it will expand stimulus and will purchase 10 trillion yen ($125 billion U.S. Dollars) of government bonds. This means the total Japanese stimulus package is now 40 trillion yen ($500 billion U.S. Dollars).  At 11am PDT, Gold is up $7.10 per ounce, trading at $1,664.30 on normal Friday volume.  I expect to see some resistance on Monday at the $1,670 price level, which is the 100-day moving average, but we should see the $1,700 price level by early May.

Indian gold retailers have reported brisk trading at the auspicious two-day Hindu festival, after weeks of subdued business due to a jeweler’s strike and weak global sentiment. The Akshaya Tritiya festival is considered a lucky time for Hindus to purchase the yellow metal and is subsequently a crucial sales period in India.

SILVER
Silver has held above $31 per ounce for the entire Asian, European and U.S market trading today.  This is very bullish considering Silver broke below the long term resistance level of $30 per ounce last Wednesday.  At 11am PDT, Silver is trading at $31.33 per ounce, up $0.21 on typical weekend low volume.