Daily Market Report 06/14/12

GOLD
On Thursday Gold posted its fourth straight session of gains, on active volume, showing excellent demand at the $1,610 support area. The main factors for the past four trading sessions have been the weak U.S. data, leading to expectations of future monetary stimulus, and investors being nervous before a make-or-break Greek election.  
              
The spot Gold price has increased more than 1 percent this week, breaking ranks with the euro, which has fallen 0.8 percent as mounting worries about the euro zone’s ability to contain the debt crisis drew some safe haven flows into Gold.        
 
Moody’s cut Spain’s sovereign debt rating by three notches to Baa3, one level above junk status, and economists expect Madrid to seek an international bailout soon, despite a newly approved euro zone plan to help the country’s battered banks.       
 
Weak U.S. retail and inflation data added to evidence of a slowdown in the U.S. recovery, raising expectations for further easing to be announced at the upcoming Federal Reserve meeting.
        
At 11am PDT, Gold is trading at $1,619.20, up $0.60 for the day on average volume of trading.

INDIA
With Gold prices reaching an all-time high of 30,420 Rupees per 10 gm on Wednesday, investors are keen on parking their money in Platinum, which is trading at 28,500 Rupees per 10 gm. Precious metal analysts say it is the right time to buy Platinum because the metal is likely to provide nearly 30% returns by the end of the year.

SILVER
The recent performance of the Silver price has been very disappointing. In the face of four straight days of increases in the Gold price, Silver needs to be testing the $30 resistance level and it cannot stay above $29.00 per ounce. At 11am PDT, Silver is down $.50 per ounce, trading at $28.52 per ounce on normal volume.