Daily Market Report 10/8/12

GOLD

The Gold market opened lower in Asia, reaching $1,765 at one point, on last week’s US non-farm payrolls report. That report showed an increase of 114,000 jobs for September, dropping the unemployment rate to a 44-month low of 7.8 percent from 8.1 percent previously. This was significant because the US Federal Reserve has linked its open-ended monthly purchases of $40 billion of mortgage-backed securities (QE3) to the health of the nation’s labor market. From a longer term prospective, accommodative measures from the US central are unequivocally supportive of Gold because extra liquidity tends to debase the dollar and create future inflationary risks. At 11am PDT today, Gold is trading at $1,774.20, down $3.80 from Friday on heavy volume. 

GOLD DEMAND INCREASED IN SEPTEMBER

GLD the largest Gold-backed exchange-traded fund (ETF) purchased 85.4 metric tons of Gold last month, the most since July 2011. The holdings of GLD has reached a record 2,554.3 tons of .999 fine Gold on October 3, valued at $146.8 billion, data shows.

SILVER

Silver did reach a low of $33.75 per ounce earlier this morning before sizeable demand came in, driving it back above $34 per ounce. At 11am PDT today, Silver is down $0.44 per ounce, trading at $34.03 per ounce on excellent volume.