Daily Market Report 06/13/12

GOLD
Gold continues to show excellent strength above the $1,600 per ounce support level. Today, Gold has traded in a narrow $18 per range, from $1,609 on the low to $1,626 on the high. Right now at 11am PDT, Gold is up $6.60 from Tuesday’s close, trading at $1,618.60 per ounce on normal volume. The next major resistance level is $1,650 per ounce.

Uncertainty about the European debt crisis continues to lead analysts to believe that the Gold price will probably receive a further boost, as the financial markets expect more monetary stimulus (QE) from major central banks. Gold traders are supported by the news that ICBC, the largest bullion bank in China, is expecting a 10% rise in investment demand in China, and Chinese economic growth has not collapsed as much as expected. Additionally, physically-backed Gold ETP holdings are still up year-to-date by 26 tonnes, and private investors are increasingly demanding Gold bars and coins, while central banks continue to invest in Gold, reflecting the diversified sources of long-term Gold demand.

SILVER
The Silver market price has been above and below the $29 per ounce level all morning. Today’s low was $28.67 per ounce, with a high and resistance level was $29.26. Right now at 11am today, Silver is trading virtually unchanged at $29.02, disappointing considering the rally in Gold and Platinum.