Daily Market Report 8/14/12

GOLD

Gold turned lower today, after the U.S. Commerce Department said that retail sales rose by a seasonally adjusted 0.8% in July, easily surpassing expectations of a 0.3% increase. This increase was stronger-than-expected and dampened hopes for further easing by the Federal Reserve. After the news was released this morning, Gold sold off to as low as $1,590 per ounce before rallying back.  At 11am PDT, Gold is down $9.70, trading at $1,600.20.

Morgan Stanley, one of the most respected U.S. financial institutions, has forecast the Gold price for the third and fourth quarters of this year. The average Gold price forecast for the third quarter is $1,650 per troy ounce, and for the fourth quarter the forecast is $1,750 per troy ounce.

SILVER

Silver sold off with Gold this morning, reaching $27.56 and again, as in the past, Silver demand increased and the market rallied back.  At 11am PDT Silver is down $0.04 per ounce, trading at $27.79 per ounce on an increased volume of trades.