Daily Market Report 8/07/12

GOLD

At 11am PDT today Gold is trading virtually unchanged from yesterday at $1,611.80, down $0.60 per ounce on average trading volume.

PHYSICAL GOLD DEMAND IS INCREASING

South Korea increased its Gold holdings by nearly a third in July, buying 16 tonnes of Gold for $810 million, an average cost of $1,582 per ounce. This purchase is part of South Korea’s central bank efforts to diversify its massive foreign exchange reserves.

SPDR Gold Trust, known as GLD, showed an inflows of about six tonnes over the past week, and stated there was substantial Gold buying activity occurring on dips below $1,600.

SILVER

While the Silver market has been dominated by talk of burdensome physical supply and slack investment demand recently, we finally saw some good price movement today. Surprisingly, Silver has outperformed the Gold price today. At 11am PDT, Silver is trading at $28.11, up $0.19 per ounce on average trading volume.