Daily Market Report 12/3/12

GOLD

Gold traded today in a tight $12 price range, from $1,712 to $1,724 per ounce on light volume. The $1,700 per ounce level is has become an excellent support level for many of the professional traders. The current short term resistance level is $1,755 per ounce. At 11am PDT Today, Gold is up $7.10 per ounce, trading at $1,719.70 per ounce on lower than average volume.

Both Republican and Democratic leadership were on many of Sunday’s talk shows discussing the status of an agreement on the Fiscal Cliff issues. In Europe, on Friday, German lawmakers approved the latest Greek bailout program, which should clear the way for Greece to receive 44 billion euros in fresh loans.

SILVER

Silver took price direction from Gold for most of the trading session. I am seeing excellent physical demand around $33 per ounce with moderate selling as the market approaches $34 per ounce. At 11am PDT today, Silver is trading at $33.66 per ounce, up $0.31 per ounce on light trading.