Daily Market Report 05/08/12

GOLD
In Greece, New Democracy, the country’s mainstream center-right party, has declared that it will not be able to form a government. This has caused instability within the Euro-zone nations and the euro has fallen versus the U.S. Dollar. As the U.S. Dollar moves higher in value against other currencies, it drives down the value of Gold and Silver. Therefore we have Gold down today, and at 11am PDT, Gold is trading at $1604.60, down $35 on heavy volume.

The shine is back on gold jewelry in India with the government scrapping the 1% excise duty imposed on gold jewelry, raising expectations of an immediate pickup in demand.

China imported 62.9 tonnes of Gold from Hong Kong in March, 59 percent higher than February, and up sixfold on the same month of last year. Commerzbank AG stated, “Rising prosperity levels among the Chinese population coupled with tighter laws governing property speculation are likely to contribute to sustained high demand for gold in China.”

SILVER
Silver has bottomed below the important $30 support level on heavy trading. If it can’t rally above $30 within the next few days, look for the market to test the $28 level. At 11am PDT, Silver is down $0.86, trading at $29.53 per ounce.