Daily Market Report 06/04/12

GOLD
With the New York Stock Exchange’s DJIA down over 330 points since last Friday and dramatic selloff in the world’s equity markets, we are starting to see a run to the only true safe haven investment, PHYSICAL GOLD. Gold has traded today from $1,608 per ounce on the low to $1,623 per ounce on the high, a very narrow trading range considering Friday’s $66 increase. At 11am PDT, Gold is trading at $1,614.30 per ounce, down $7.80 per ounce on very active trading.

Dennis Gartman, editor of the Gartman Letter, wrote, “QE3 is coming, as shall be a massive expansion of the Long-term refinancing operation (LTRO) in Europe and as shall be expansionary policies in Canada, in Australia, in China et al. They have really no choice.”

Hong Kong’s Gold shipments to mainland China in April jumped 62 percent to the second-highest level on record, while Gold flow from China increased to an unprecedented level, official Hong Kong trade data showed on Monday. Hong Kong shipped out 101,768 kg of Gold to mainland China in April, and received 34,368 kg from China, which brings the net exports to 67,400 kg, a surge of 77 percent on the month, according to the data just released.

SILVER
Silver tested the $28 per ounce support level this morning, reaching $27.92 early this morning before rallying back to $28.30 per ounce. At 11am PDT, Silver is down $0.38, trading at $28.13 per ounce on heavy volume.