Daily Market Report 06/12/12

GOLD
Gold moved back above the important $1,600 per ounce resistance level today on news that Federal Reserve Bank of Chicago President Charles Evans said he would support a variety of measures to generate faster job growth, underscoring his preference for more stimulus. “I’ve been in favor of pretty much any accommodative policy I’ve heard about,” Evans said in an interview on Bloomberg Television’s “In the Loop” with Betty Liu that was aired today. “Extending the Twist would be useful,” he said, referring to a plan expiring this month that lengthens the average duration of bonds in the Fed’s portfolio. “More asset purchases would be useful. More mortgage-backed securities purchases would be good.”

At 11am PDT, Gold is up $14.50, trading at $1,612.00 per ounce, on average volume of trading. The next events that will have an effect on the Gold price will be the Greek vote on June 17, as well as a Group of 20 meeting and the U.S. Federal Reserve’s policy meeting next week. Any possible news coming out of these events could easily drive the Gold price above the $1,650 resistance level.

India, the largest importer of Gold in the world, reports that Gold imports in the last fiscal year rose 44.4% year-on-year, as per latest figures released by Reserve Bank of India (RBI). India imported $61.5 billion worth in the fiscal year 2011-12, as compared with a rise of 43.5% in 2010-11 ($42.5 billion). Higher growth in imports of Gold in value terms (50.9%) than that of international prices (29.0%) during April-December 2011 reflect that price as well quantum factors led to surge in imports of Gold during this period.

YOU ARE GETTING POORER
The recent recession wiped out nearly two decades of Americans’ wealth, according to government data released Monday, with ¬middle-class families bearing the brunt of the decline. The Federal Reserve said on Monday that the median net worth of families plunged by 39 percent in just three years, from $126,400 in 2007 to $77,300 in 2010. That puts Americans roughly on par with where they were in 1992.

SILVER
Silver is fighting to stay above the $29 per ounce resistance level. It has been as high as $29.21 and quickly sold off reaching a low of $28.41 per ounce.  At 11am PDT, Silver is trading at $29.02 per ounce, on average volume.