Daily Market Report 10/1/13

GOLD

Technical stops were triggered this morning on the U.S. Gold exchange and Gold broke down dramatically. At 8:00 AM EST, 4,543 lots (454,300 ounces) traded in the active December Gold contract and Gold dropped $9. Then, at exactly 8:30 AM EST, 8,174 (817,400 ounces) lots of Gold hit the exchange as stops went off. Gold fell from $1,310 all the way down to $1,282 before momentarily regaining its footing. With China on holiday all week, the normal heavy Chinese Gold buyers are absent from the market.

At 11am PDT, today Gold is trading at $1,287 per ounce, down $43 per ounce on very heavy volume.

The World Gold Council’s managing director for the Far East, Mr. Albert Cheng, said today that China and India were currently the consumers of more than 60% of global Gold. Mr. Cheng, who was speaking to Mining Weekly Online from the London Bullion Market Association (LBMA) conference in Rome, said China was on track to consume at a record level of more than 1,000 tonnes of Gold by year-end. Mr. Cheng also stated that India’s Gold consumption will be down this year compared to last year due to government import restrictions, but 2013 Indian consumption would also more than likely hit the 1,000 tonnes level.

SILVER

Silver took its direction from Gold this morning and dropped to a low of $20.59 before seeing major support. Physical demand for Silver investment products in the U.S. remains strong, as the U.S. Mint reported selling over 3 million 1 ounce Silver eagles in September, and over 36 million for the year.

At 11am PDT today, Silver is trading at $21.08, down $0.69 per ounce on very active trading.