Daily Market Report 12/21/12

GOLD

Last night Gold tested support at the $1,635 per ounce price level before sizeable buying appeared, driving the market back up to $1,660 per ounce. At 11am PDT today, Gold is up $12.20 per ounce on heavy volume, trading at $1,657 per ounce.

The Asian and domestic precious metal commodity markets are over-reacting to the Fiscal Cliff negotiations and shenanigans. Most political experts believe that some type of last minute agreement or extension will be reached by the December 31, 2012 deadline. Therefore, these very attractive precious metal prices are truly an opportunity of a lifetime. The primary supply-demand and monetary fundamentals for Gold have never looked better and central banks around the world are aggressively buying. 

CENTRAL BANKS CONTINUE TO BUY GOLD IN NOVEMBER

For a third month in a row Brazil boosted Gold reserves, adding 14.8 metric tons (475,820 troy ounces) in November. This doubles Brazil’s central bank Gold holdings since August; bringing their Gold reserves to 67.2 metric tons. Russia, Belarus, Iraq and South Korea have reported adding Gold in October and November to diversify their assets.

SILVER

Silver is trying to establish support at the $30 per ounce level. Yesterday and this morning, Silver traded very actively below $30 per ounce, reaching $29.61 per ounce at one point. At 11am PDT today, Silver is trading at $30.14 per ounce, up $0.44 per ounce on higher than normal volume for a Friday.