Daily Market Report 12/11/12

GOLD

Gold traded in a very narrow $10 range today awaiting an announcement tomorrow by U.S. Federal Reserve policy makers. They are expected to announce more stimulus measures (QE). Remember, any additional quantitative easing from the U.S. central bank would be viewed as unequivocally supportive of Gold because extra liquidity tends to debase the dollar and create future inflationary risks. 

At 11am PDT today, Gold is down $6.00, trading at $1,708.40 per ounce on light volume.

PHYSICAL GOLD DEMAND GROWS AS SUPPLIES PLUNGE 

Physical demand, in terms of industrial and jewelry use in the Far East as well as coin and bar domestically in the U.S., has picked up significantly after the re-election of President Obama. South African Gold output plunged by 46 percent in October, as a wave of labor strikes in the country idled the continent’s biggest mines.

SILVER

This morning there was some light selling of Silver in Asia, which drove the price below the $33 per ounce support level. At 11am PDT today, Silver is trading at $32.93 per ounce, down $0.33 per ounce on average volume.