Daily Market Report 06/26/12

GOLD
The price of Gold is ultra-sensitive to news out of Europe and specifically Germany, where Chancellor Angela Merkel this morning appeared to reject hopes for European fiscal reforms. The world’s financial markets had hoped that Germany would finally relent and support the use of so-called Euro-bonds, but Merkel said such a move would be economically wrong and counterproductive. At 11am PDT, Gold is trading at $1,574.40 per ounce, down $11.90 per ounce.

Russia’s central bank bought another 14 tonnes of Gold bullion in May, according to data from the Interfax agency Thursday. That takes net purchases by the official Russian central bank to almost 150 tonnes for 2012 so far, based on data compiled by the World Gold Council market-development group.

SILVER
Silver has traded in a relatively tight range today. At 11am PDT, Silver is down $0.45 per ounce at $27.19 per ounce.