Daily Market Report 8/26/13

GOLD

Gold rallied above $1,400 per ounce this morning, reaching $1,407 in Asia but couldn’t hold. At that point we saw short term profiting driving the price back under $1,400 per ounce.

At 11am PDT today, Gold is trading at $1,393 per ounce, down $1 per ounce on average volume.

Ever since Germany asked for the return of 300 metric tonnes of Gold that was being held by the Federal Reserve (and was told that it would take seven years), we have seen major withdrawals of Gold from U.S. depositories. Last week, JP Morgan withdrew over 28,000 ounces, bringing the Gold in registered COMEX warehouses down to just over 7 million ounces. 2013 started with almost 11.7 million ounces of Gold and has declined now by 4.7 million ounce (40.1%). At the current rate of decline COMEX warehouses will be out of Gold by 2014. That would be very bullish for the Gold price.

SILVER

Silver moved sharply higher this morning with Gold, reaching $24.44 per ounce. Right now $24 per ounce is an important price level, and it appears the Silver market has enough demand to hold above.

At 11am PDT today, Silver is up $0.14 per ounce, trading at $24.02 per ounce on better than average volume.