Daily Market Report 8/27/12

GOLD

After last week’s $53 per ounce increase, Gold has been trading in a very narrow $9 per ounce low/high trading range today. Gold hit a low this morning of $1,666 in Asia before a rally back above $1,670 per ounce. At 11am Gold is trading at $1,673 per ounce, virtually unchanged from last Friday’s close. Like I said in my Weekly Market Report, if Gold can consolidate early this week it would be very bullish for a continued rally reaching $1,700 per ounce very soon. 

Net speculative length for Comex Gold rose by a sizeable 70.4 tonnes to 450.5 tonnes for the week ending August 21st. This was due to an increase of 48.2 tonnes in new longs with a 22.2 tonnes fall in shorts, according to CFTC data.

SILVER

Silver continues its very impressive move higher on excellent demand. At 11am PDT Silver is up $0.50 per ounce trading at $31.02 per ounce. Physical demand for Silver investment products in Asia and Europe is picking up. 

PLATINUM

The Lonmin mine in South Africa appears to be normalizing. Most workers are expected to be back today, although it will take a few weeks before the mine is once again producing at full capacity. Production of about 60,000-70,000 ounces of Platinum are estimated to be lost as a result of the shooting there.