Daily Market Report 8/06/12

GOLD

Gold has stayed above $1,600 per ounce for the entire day on excellent demand. At 11am PDT, Gold is trading at $1,612.40 per ounce up $5.20 per ounce on excellent volume.  

The Chinese Keep Buying More and More Gold

China imported 382.79 tons of Gold from Hong Kong in the first half of the year, up 64.95 tons over the same period last year, according to the Census and Statistics Department of the Hong Kong government.

HSBC Bank looking for $1,900 Gold by Year End

Gold could be one of the few assets to profit from the political and economic turbulence in the United States as the “fiscal cliff” approaches, potentially creating a rally in the precious metal later in 2012 for it to reach $1,900 per ounce by the end of the year, analysts at HSBC said. “Economic uncertainty, geopolitical tensions and the uncertainty of the U.S. November elections are theoretically Gold-bullish,” and Gold should perform better later in the year “when U.S. growth is poor and the dollar is weak,” a new HSBC report said. “We expect prices to rally to above $1,900/oz by the end of the year. Patience is the most important commodity.”

Italy’s Prime Minister Mario Monti warns of a major risk of a Currency Crisis in Europe’s future. Monti said, “I can only welcome the ECB’s statement that there is a ‘severe malfunctioning’ in the market for government bonds in the euro region. It’s also true that some countries have to shoulder ‘extraordinarily high’ costs to finance their debts. That’s exactly what I’ve been saying for a long time.” He urged swift action to lower borrowing rates during a Germany’s Spiegel magazine interview.   

SILVER

Silver is up today following Gold’s lead, reaching a high of $28.11 per ounce. However, Silver continues to have a difficult time staying above $28 per ounce. At 11am PDT Silver is trading at $27.92, up $0.08 per ounce on light trading.