Daily Market Report 8/16/12

GOLD

Chinese Premier Wen Jiabao was quoted as saying that there is more room to adjust monetary policy and thereby improve the economic outlook in the region.  After the Chinese Premier’s statement was released Gold jumped $10 per ounce to $1,612 per ounce. At 11am PDT, Gold is up $14.20, trading at $1,616.80 on excellent volume.

The World Gold Council released its second quarter Gold Demand Trend report showing Gold demand of 990 tonnes worth $51.2 billion. The report shows demand for Gold jewelry has weakened from last year levels, but central bank buying as accelerated, which offsets the decline. See the full report at http://www.mintstateGold.com/investor-education/wgc_2nd_qtr_report/

SILVER

Silver moved up with Gold this morning, crossing back over the $28 level again. Recently Silver has shown excellent support and demand in the $27.50 range. At 11am PDT, Silver is trading at $28.25 per ounce, up $0.41 on average volume.

PLATINUM

Seven people were killed after police opened fire on the thousands of strikers at the closed Marikana Platinum mine in South Africa. The Marikana Platinum Mine, being the third largest Platinum mine in the world, is a major producer of Platinum and any stoppage of production causes a shortage in physical supplies. Platinum rallied $25 per ounce on this news. At 11am PDT, Platinum is up $43 per ounce, trading at $1,433 per ounce.