Daily Market Report 9/25/12

GOLD

Gold rallied this morning based on reports of increasing physical demand for Gold and a press release from the IMF reporting new central bank buying of Gold in July and August. In India we are looking for strong Gold demand as the festival of Diwali approaches on November 13th.  At 11am PDT Today, Gold is up $2.30, trading at $1,766.50 per ounce.

CENTRAL BANKS KEEP ON BUYING GOLD

Central bank Gold buying continues to be a very bullish fundamental for the current Gold rally. South Korea increased their Gold holdings by nearly 16 tons in July, Paraguay increased by 7.5 tons in July, Turkey by 6.6 tons in August, and Ukraine added 1.9 tons August. 

DEMAND CONTINUES TO GROW

Investors continued to pile into Gold, sending holdings of physically backed exchange-traded funds (GLD) to a record high of 1,326 tonnes, with expectations that recent stimulus moves by central banks will support further strength in bullion. The total holdings of all Gold ETFs also hit an all-time high yesterday, at 73.765 million ounces, or 2,294 tonnes.

SILVER

Today Silver has been in an active 93 cent trading range, with excellent volume. Silver traded up to $34.60 before we saw some professional profit taking. At 11am PDT today, Silver is virtually unchanged, trading at $34.03, up one penny on active volume.