Daily Market Report 10/26/12

GOLD

Gold has traded this morning in a narrow $18.50 price range from a low of $1,701.40 to a high of $1,719.90 per ounce. The very important support level of $1,700 per ounce has held well.

At 11am PDT today, Gold is trading at  $1,713.00 per ounce, up $0.25 per ounce from yesterday on light volume.

THE WORLD’S CENTRAL BANKS STILL BUYING GOLD

The International Monetary Fund’s (IMF – www.imf.org ) website shows the activities of the World’s Central Banks in regard to their September Gold reserves additions and sales.  The IMF shows that Brazil’s Gold holdings increased by 1.7 tons last month to 35.3 tons, the first increase since 2008. Turkey’s holdings increased 6.8 tons and Ukraine added 0.3 ton. Russia’s reserves fell by 2.2 tons, Belarus declined by 1.5 tons,  Czech Republic deceased by 0.3 ton and Kazakhstan by 0.4 ton, the data show. Central banks have been aggressively expanding their Gold reserves for the past three years. The buying is expected to continue given the lower prices and currency risks in the developed world. Gold-backed ETP holdings reached a record high of 2,585.1 metric tons as of 24 October while big speculators are still bullish on Gold.

SILVER

$32 per ounce is an important support level for Silver. During today’s trading Silver has been above and below that support level multiple times, reaching a low of $31.60 per ounce.  At 11am PDT today, Silver is down $0.05 per ounce, trading at $32.07 per ounce on normal Friday type volume.