Daily Market Report 8/17/12

GOLD

Gold has been range bound today in light weekend type trading. The low/high price range for Gold today has only been $11 per ounce for $1,610 to $1,621. At 11am PDT, Gold is trading virtually unchanged at $1,616.20 per ounce, down $0.60 from the same time on Thursday, on very light weekend type volume.

Central Bank Gold Buying on Record Pace

The largest increase in global official Gold reserves purchase over the five year period between 2008 and 2012 was clocked by Russia trumping Europe. Russia bought over 500 tons of the yellow metal. China came in second with 454 tons and India third at 200 tons. Recently South Korea, Mexico, Egypt, Turkey, Kazakhstan, Brazil, India, Ukraine, and the Philippines are been aggressive Gold buyers to build their nations Gold reserves. In 2010, the world’s Central Banks purchased 77 tonnes of Gold, while in 2011 the world’s central banks increased their purchases by almost 500% to 458 tonnes of Gold. The World Gold Council has projected 2012 to be an all-time record year for Central Bank purchases of Gold. 

China Wants to Increase its Below Ground Ownership of Gold 

China National Gold Corp wants to increase its offshore Gold supply to help meet soaring demand for Gold at home. It is considering a bid for the African unit of Barrick Gold, the world’s No.1 producer. If state-owned China National Gold makes a bid for all of African Barrick, it would rank as the biggest Chinese deals for this corporation. 

SILVER

Silver has been in a tight $0.52 low/high price range. At 11am PDT, Silver is down $0.12 per ounce, trading at $28.13 per ounce on very light weekend volume. 

PLATINUM & PALLADIUM

Late yesterday, police opened fire on protesters at the Lonmin Platinum mining facilities near Marikana, South Africa, killing upwards of 30 striking mine workers. Lonmin confirmed that the first six days of the wildcat strike resulted in production losses 30,000 tonnes of ore or 15,000 Platinum-equivalent ounces. Today, Platinum is up $35 per ounce, trading at $1,468, while Palladium is up $20 per ounce, trading at $602 per ounce.