Daily Market Report 05/29/12

GOLD
During the long holiday weekend Gold traded up to $1,584.50 on fresh buying before this morning’s statement by Bankia Bank, Spain’s third largest bank, saying that troubled Spanish banks may need as much as 100 billion Euros to deal with the current debt crisis. After that statement the Euro dropped versus the U.S. Dollar and Gold fell $30 before rallying back. At 11am PDT Gold is down $14.20 per ounce, trading at $1,554.60 per ounce on heavy volume.

Gold Demand Continues to Increase in China
China’s Gold bar consumption rose sharply by 51% year-on-year to 213.9 tons in 2011, while its Gold coin consumption gained 25% year-on-year to 20.8 tons, as per latest figures released by China Nonferrous Metals Industry Association (CNIA) on Monday. According to CNIA figures, China’s jewelry consumption increased by 28 % to 456.7 tons in 2011 and Gold consumption gained by 33% or 190 metric tons to 761 tons last year.

Read my latest article on Gold here:
http://www.mintstategold.com/investor-education/the_right_time_to_buy_gold/

SILVER
Silver trading has been very active over the past two days, trading from a low of $27.67 to $28.81 per ounce. The European debt crisis news has been the main stimulus for Silver’s volatility. At 11am PDT, Silver is down $0.52, right at the key $28.00 per ounce price.