Daily Market Report 12/7/12

GOLD

This morning the Gold bears took another unsuccessful attempt at breaking down Gold below the $1,684 per ounce support level after the U.S. nonfarm payroll numbers were released. However, a cut by the European Central Bank in future interest rates and a fall in U.S. consumer sentiment provided support for higher Gold prices. I think we have seen this Gold correction hit bottom, and Monday’s trading should confirm that statement. That said, I feel we will see higher price by year end. The only caveat is the Fiscal Cliff Crisis in Washington, DC that is still a big question mark.

The highly respected financial firm of Morgan Stanley has four excellent reasons why Gold is their favorite commodity in 2013. They forecast Gold to have an average 2013 price of $1,853 per ounce. To read their reasons see: http://www.mintstateGold.com/investor-education/cat/news/post/morgan_stanley_likes_Gold/ 

At 11am PDT, today Gold is trading at $1,704.20 per ounce, up $4.10 per ounce on better than average trading volume for a Friday. 

SILVER

Silver traded as low as $32.63 per ounce earlier this morning; however it continues to close over the $33 per ounce support level. At 11am PDT today, Silver is unchanged, trading at $33.03 per ounce on good volume.