Daily Market Report 7/9/12

GOLD

Gold is trading in a very narrow $12 high/low price range today, from $1,580 on the low to $1,592 on the high. Gold is finding support today from mild short-covering and robust buying from the Asian markets whenever the price eases towards $1,580. At 11am PDT, Gold is up $10.80, trading at $1,592 per ounce on average volume. Today, Standard Bank forecasted an average Gold price of $1,780 per ounce in the current quarter and of $1,850 in the final three months of the year.

SILVER

Silver is has stayed above the $27 per ounce level all day. The high/low has had a $0.47 range, from $27.11 on the low to $27.58 for the high. At 11am PDT, Silver is trading at $27.55 per ounce, up $0.48 on light trading volume.

MORE MONETARY EASING COMING

China’s annual inflation rate fell to 2.2% in June, the government’s National Bureau of Statistics reported Monday. That’s the lowest inflation rate in nearly two and a half years and comes as prices have been falling, especially on food. The People’s Bank of China has lowered interest rates twice in the last month. The central bank has also tried to spur growth by cutting the amount of money banks are required to hold in reserves. China’s economic growth has started to slow amid weaker global demand. Simultaneously, inflation has slowed dramatically, freeing China’s central bank to stimulate the economy with monetary easing (QE).