Daily Market Report 5/16/13

GOLD

Early this morning in Asian/European trading Gold tested and held above the $1,370 per ounce level on heavy volume. Gold is still on the defensive, but we are seeing sizeable demand at these attractive levels. At 11am PDT Gold is trading at $1,387, down $11.20 per ounce on heavy volume.

World Gold Council first quarter 2013 in Gold demand summary

The World Gold Council just released the extraordinary 1st 2013 quarter Gold demand numbers.

Consumers power Gold jewelry demand, up 12% in Q1 2013

Q4 2012 recovery in the jewelry sector continued into the first quarter of this year. Global jewelry demand of 551 tonnes, a record of US$28.9bn, surpasses the previous quarter’s record.

Q1 2013 Gold investment: ETFs down 177 tonnes, bars & coins physical demand up 378 tonnes

The decline in investment demand relative to Q1 2012 was solely attributable to the net outflows from ETFs, which obscured the strong rise in investment for Gold bars and coins at the retail level.

Technology Gold demand contracted 4% in Q1 2013

In the first quarter of 2013, demand for Gold in the technology sector declined by 4% year-on-year to 102 tonnes. In value terms, demand was 7% lower at US$5.4bn.

Central banks continue steady level of Gold purchases in Q1 2013

Central banks added 109.2t of Gold to their reserves in Q1 2013, the ninth consecutive quarter of net purchases. The sector accounted for 11% of demand in the first quarter, worth a value of US$5.7bn.

Total supply of Gold little changed in Q1 2013, up 1% year-on-year to 1,051.6 tonnes

A modest year-on-year increase in Q1 mine production was countered by a decline of a similar magnitude in the supply or recycled Gold with the net result that total supply grew by 1%.

SILVER

Silver reached a low of $22.05 in Asian/European trading this morning. Physical demand is still strong, but supplies have been increasing and the premium on Silver rounds and eagles is dropping. At 11am PDT today, Silver is down only $0.13 per ounce, trading at $22.69 per ounce.