Daily Market Report 06/27/12

GOLD
Gold sold off this morning based on an overnight statement by Germany’s Chancellor Angela Merkel. The statement was that Germany would not support a so-called Euro-Bond, which would provide liquidity for Euro zone countries in a financial crisis. Merkel was quoted as saying: "Europe will have no shared total liability of debt as long as I live."

Short term Gold support is at $1,558, with resistance at $1,594. At 11am PDT, Gold is trading at $1,578.40 per ounce, up $4.80 per ounce on normal volume.

CENTRAL BANKS CONTINUE TO BUY MORE GOLD
Turkey’s central bank has raised its reported Gold holdings by 5.692 tonnes in May to 244.986 tonnes, International Monetary Fund (IMF) data showed on Tuesday, as it joined a string of countries in increasing bullion reserves this year.

Kazakhstan lifted its Gold reserves by 1.8 tonnes last month, the IMF’s international finance statistics report showed, having added 2.02 tonnes to its holdings in April.

Ukraine increased its reserves by another 2.1 tonnes, after adding 1.4 tonnes the previous month.

Russia said last week that it had upped its Gold reserves by 15.6 tonnes in May, to just over 911 tonnes.

SILVER
Silver sold down to $26.60 per ounce this morning on the Merkel statement. Right now, at 11am PDT Silver is down $0.12 per ounce, trading at $27.09 per ounce on average volume. Short term Silver price support is at $26.60, with price resistance at $27.83.