Daily Market Report 7/16/12

GOLD

Gold briefly sold off last night, reaching $1,577 per ounce in Asia at one point before demand overwhelmed the market and Gold rallied back above the $1,590 level. I think the increased volume of purchasing is coming from central bank Gold accumulation. This week the IMF should release central bank Gold purchasing numbers for June, and I believe that number will be higher than May’s record purchases. At 11am PDT, Gold is trading at $1,592 per ounce, up $1.90 from Friday’s close on good volume. 

SILVER

Overnight Silver trading is showing good strength in the face of weaker global economic news. Silver did sell off this morning as weak economic news was released. However, Silver below $27 per ounce appears to be a very attractive level for demand. At 11am PDT, Silver is up $0.04, trading at $27.42 per ounce. 

ECONOMIC NEWS THAT DIRECTLY AFFECTS PRECIOUS METAL PRICES

The Commerce Department reported this morning that US Retail Sales unexpectedly declined 0.5% in June, falling for the third month in row. Consumers spent less on autos, furniture, appliances, on building and garden supplies and at department stores.

China’s GDP grew at a 7.6-percent rate in the second quarter of 2012, roughly matching expectations but lower than the government’s 8.1-percent target for the full year.