Daily Market Report 05/07/14

GOLD

Gold prices fell below $1,300 per ounce today after Russian President Vladimir Putin said he was ready to discuss a way out of the Ukraine crisis with the head of the Organization for Security and Cooperation in Europe. Plus, President Putin has stated he would move his troops back from the eastern Ukraine border.

In Ukraine, both sides have been burying their dead as the country slides further towards war, with supporters of Russia and of a united Ukraine accusing each other of tearing the country apart.

This morning, Gold buying in Asia picked up as markets reopened after public holidays in Japan, Hong Kong and South Korea. Gold in Shanghai was trading at a $2 per ounce premium over spot, reversing the trend from recent months when prices were largely at a discount. Chinese buying has been subdued as a weaker currency has discouraged importing banks from purchasing big quantities of Gold.

At 11am PDT today, Gold is down $20 per ounce, trading at $1,288 per ounce on excellent volume.

SILVER

As trading volume picked up and Gold declined, Silver sold off this morning. Silver showed some support and an increase in volume around $19.30 per ounce. At 11am PDT today, Silver is trading at $19.35 per ounce, down $0.27 per ounce.