Daily Market Report 5/6/13

GOLD

Today we are seeing excellent consolidation in the Gold market. After April’s price volatility, Gold is now developing an excellent trading range in the $1,450 to $1,490 per ounce levels. At 11am PDT today, Gold is up $4.00 per ounce trading at $1,469 per ounce on excellent volume.

Late last Friday a report by the Commodity Futures Trading Commission (CFTC) showed that Hedge funds, professional traders, and money managers, increased their holding of Gold futures and options last week as the price of the precious metal rallied during the period.

Investors moving from paper Gold into physical Gold continues as the SPDR Gold Trust, the world’s largest Gold-backed exchange-traded fund, said its holdings fell 0.34 percent to 1065.61 tonnes on Friday -- their lowest since September 2009. During the same period we are hearing that physical demands for Gold investment products from world mints, central banks, and retailers around the world, has increased by 20% to 50% in the past two months.

SILVER

Silver continues to show resistance in the $24 per ounce level. This morning Silver rallied to $24.45 per ounce before seeing sizeable profit taking. At 11am PDT today, Silver is unchanged at $24.00 per ounce on average volume.