Daily Market Report 5/7/13

GOLD

Gold dropped $28.00 per ounce this morning as news of Vietnam’s intention to sell 10 tons of Gold caused heavy selling in the Asian markets. While central bank sales are generally off market transactions, the fear is that Vietnam’s decision could be a harbinger of broader central bank sales in the region. Additional negative news that the paper Gold holdings of the popular ETF (GLD) continue to decline (reaching a 3 year low of 1,062 metric tonnes) also caused selling.

Gold tested $1,450 again today and held, which is very bullish for the Gold uptrend. At 11am PDT today, Gold is trading at $1,451.80 per ounce, down $19.50 per ounce on heavy trading.

SILVER

Silver declined with Gold this morning, reach a low of $23.44 per ounce in Asia.

The U.S. Mint reported today that another 719,500 1oz .999 Silver Eagles were sold in the first few days of May. This makes the total Silver Eagle sales for 2013 over 19 million ounces.

At 11am PDT today, Silver is trading at $24.01 per ounce, down $0.13 per ounce.