Daily Market Report 05/10/12

GOLD
In the past 24 hours, Gold has traded from $1,585 to $1,602 per ounce on normal volume. I am concerned that unless Gold can rally above the $1,600 price level by next Monday, that level will start to act as a resistance. Gold is finding more and more support on down days; I am not sure if its sovereign buying, but it is truly massive. I think about the Gold super fundamentals of lower supplies and increasing demand. Remember, the 50 metric tonnes of Gold purchased by the world’s central banks in March and the 79 metric tonnes of Gold purchased by Chinese buyers in the first two months of this year and think the buying must be increasing in April and May with Gold at current price levels. At 11am PDT, Gold is up $1.597 per ounce virtually unchanged from yesterday at the same time.

Goldman Sachs is bullish on Gold
With the Gold price trading at $1,598 per ounce, Goldman Sachs (major Wall Street bank) stated today that its six-month and 12-month forecast for the Gold price is $1,840 per ounce and $1,940 per ounce, respectively, citing weak US growth and renewed euro zone risks, coupled with resilient physical demand.

SILVER
Within the past 48 hours, the Silver price dropped to as low as $28.54 per ounce, but quickly rallied back above $29 per ounce on heavy buying. Today, Silver is showing excellent demand above $29 per ounce. At 11am PDT, Silver is down $0.29 per ounce, trading at $29.24 per ounce.