Daily Market Report 9/26/12

GOLD

Weakness in the Euro today has driven up the value of the U.S. Dollar and a stronger Dollar is negative for Gold. Therefore, today we finally saw a short term correction in the price of Gold. Gold briefly broke down below the key $1,750 support level, reaching $1,735 per ounce at one point this morning before major professional buying appeared. At 11am PDT today Gold is trading at $1,752.20 per ounce, down $14.30 on above average volume.

Strikes at South African Gold Mines Have Lost About 39% of Capacity

Unofficial walkouts at AngloGold (AGG) Ashanti Ltd. andGold Fields Ltd. (GFI) spread across the country as workers demand above-inflation pay increases. AngloGold, the world’s third-largest Gold producer, today said all of its South African mines have been halted. Gold Fields Ltd. also lost a metric ton, or about 32,000 ounces, of production after strikes at its KDC and Beatrix operations. 

The International Monetary Fund Reports Central Banks are Buying Gold

Turkey added 44.7 metric tons in July increasing their reserves to 288.9 tons. Russia, a regular buyer in its domestic market, lifted its Gold reserves by 18.6 tons, the IMF said. Russia’s reserves stood at 936.6 tons at the end of July. 

SILVER

Silver, surprisingly, showed much more support and demand than Gold this morning. Silver briefly reached $33.24 per ounce before rallying back to the unchanged level. At 11am PDT today Silver is up 2 cents, trading at $34.05 on excellent volume.