Daily Market Report 8/13/12

GOLD

The Gold price drifted lower in quiet summer trading today, but the action should pick up over the next several trading days after the release of several closely watched US data reports and as eurozone government officials discuss the merits of new stimulus programs. At 11am PDT, Gold is down $9.30, trading at $1,612.60 per ounce. 

Gold demand is down in India because of a poor monsoon season which leads to anticipating a fall in rural incomes. The combination of a poor monsoon season with a weak rupee has kept domestic prices for gold bars and jewelry at unaffordable high price levels for consumers.

Japan’s economy expanded just 0.3 percent in April-June, half the pace expected, raising doubts about the strength of the recovery. As a rebound in consumer spending loses momentum and Europe’s debt crisis weighs on worldwide demand, these facts increase the chance of new stimulus by the Japanese central bank.

SILVER

With a moderate sell off in Gold, Silver broke down below $28 per ounce. Today, at 11am PDT, Silver is trading at $27.89 per ounce, down $0.26 per ounce on light volume.