Daily Market Report 06/05/12

GOLD
The longer Gold holds above the $1,600 per ounce support level, the more I like it. Tomorrow is the first day London starts trading Gold (closed for a special holiday) since the big move on Friday. If we can stay above $1,600 by Wednesday, I think we have seen the lowest levels for the year and it’s up from here on. With Gold at the recent low prices we are seeing increasing demand from Asia and Central Banks, so I believe purchases during April and May will be up a sizeable amount. Gold demand keeps growing in Asia with Gold imports into Hong Kong reached a lifetime high of 103.6 tonnes in April, up from 63 metric tonnes the previous month. Through April, China’s imports have reached a record 431.2 tonnes.

At 11am PDT, Gold is trading at $1,617.10 per ounce, up $2.80 per ounce and good volume.

SILVER
Silver is trading in a very narrow range, from $28.19 to $28.64, awaiting news of the anticipated quantitative easing from Europe, England, Japan or the U.S. Hopefully, the ECB meeting scheduled for later this week will provide some news and help establish a bullish market direction. At 11am PDT, Silver is trading at $28.47 per ounce, up $0.34 per ounce on average volume.