Daily Market Report 10/17/12

GOLD

Gold gained this morning ahead of a summit of European Union leaders and amid speculation that Spain may accept credit from a rescue fund, weakening the dollar. At 11am PDT today, Gold is up $2.40 per ounce, trading at $1,751.70 per ounce on average volume.

STRONG PHYSICAL DEMAND FOR GOLD IS ON THE HORIZON

Barclay’s head precious metal traders say experienced Gold and Silver investors are moving away from ETF’s to purchases of physical Gold and Silver. Read the full article here: http://www.mintstateGold.com/investor-education/investors_moving_to_physical_Gold/ 

Physical Gold buying, particularly from major consumer country like India, has long been expected to pick up ahead of the key festival season that culminates in Diwali. This year, Diwali starts on November 13 and runs for five days until November 17, and during this period, physical demand for Gold will be very strong. 

SILVER

This morning Silver has been trading mostly above $33 per ounce, showing good demand. Silver’s recent testing of the $32.50 per ounce support level was healthy, however I need to see it break back above $34 to get short term bullish. At 11am PDT today, Silver is trading at $33.32 per ounce, up $0.26 on normal volume.