Daily Market Report 12/5/12

GOLD

After a $25 price drop yesterday, Gold is trying to consolidate in the $1,700 per ounce price range. Earlier this morning Gold did trade as low as $1,685 per ounce average volume. For most of the day, Gold has traded in the $1,690 to $1,700 area. At 11am PDT today, Gold is down $4.85 per ounce, trading at $1,693.50 per ounce. 

CENTRAL BANKS KEEP BUYING GOLD

South Korea’s Central Bank said on Wednesday it bought 14 tonnes (450,100 ounces) of Gold in November using its foreign reserves in order to spread its currency portfolio risks. The Bank of Korea bought the Gold for $780 million, the fourth purchase in about one-and-a-half years. The Bank of Korea now holds 84.4 tonnes of Gold, valued at $3.76 billion in terms of purchase prices, up nearly six-fold from 14.4 tonnes before June last year. The World’s Central Banks were net buyers 373.9 tons of Gold in the first nine months of the year, according to the World Gold Council, which said in November that full-year additions will probably be at the “bottom end” of a range from 450 to 500 tons. Last year, Central Banks purchased 456 tons.

SILVER

Silver is seeing more support than Gold at the current price level. Today, Silver has traded between $32.53 to $33.25 per ounce. At 11am PDT Today, Silver is trading at $32.90 per ounce, unchanged from yesterday’s close.