Daily Market Report 6/27/13

GOLD

Overnight in Asian markets Gold rallied up to $1,245 per ounce before selling hit the market. The normal demand from Chinese and Indian buyers did not appear and the Gold quickly sold off, reaching a low of $1,208. Because of the weakness in the Asian and European economies the U.S. Dollar has been the strongest currency trading, which is another negative for Gold. Remember, it is believed that there is major long term support for Gold at $1,200 per ounce and I would expect to see sizeable amounts of profitable short covering by professionals at that level.

At 11am PDT today, Gold is trading at $1,210 per ounce, down $24 per ounce on heavy volume.

The War on Gold continues in India

GOLD DEALERS in India – the world’s biggest Gold-buying nation – are being asked to suspend sales of Gold bars and coins by a major trade association. The All India Gems & Jewelry Trade Federation told journalists this week that it will ask its 42,000 member companies to stop selling investment Gold units until India’s trade deficit has stabilized. Private demand for Gold bars and coin has grown over the last 5 years from 28% to more than 36% of the country’s annual total, according to data from market-development organization the World Gold Council. While still more popular thanks to wedding gifts and festival purchases, Gold jewelry typically sells at much higher mark-ups than bar and coin Gold investment units.

SILVER

The world’s largest Silver ETF, the iShares Silver Trust, on Monday posted a 192-tonne, or nearly 2 percent, decline to 9,882 tonnes, its biggest daily drop since June last year. Similarly, holdings in six major Silver ETFs fell to 16,139 tonnes, their lowest since December.

At 11am PDT today, Silver is down $0.12 per ounce, trading at $18.58 per ounce on better than average volume.