Daily Market Update 03/05/12

GOLD

Today is a key day in the latest Gold market bull/bear war.  The bears need to drive gold down to close under the $1,700 per ounce support level today.  While the bulls, supported by Asian buying, would like the $1,700 level to hold.  This morning gold hit $1,694.40 on light trading, then volume picked up and gold rallied above the $1,700 mark.  At 11am PST, Gold is holding above the $1,700 mark, trading at $1,703.20 per ounce on  average volume.

Chinese Premier Wen Jiabao officially lowered their GDP growth rate forecast to 7.5% from 8% this morning.  The lower growth isn’t surprising, especially after the government just spent the last 2-1/2 years with tight policy actions to slow the rapid inflation it had been seeing. But their monetary stance has changed this year with two rounds of lower interest rates combined with lowering bank reserve requirements. Both monetary changes are bullish for the millions of Chinese gold and silver owners.

SILVER

Trading in the Silver market today has had a $1.43 range; this morning hitting a low of $33.44, compared to a high of $34.87 per ounce.  Much of the reaction was caused by the lowering of the GDP growth rate in China. At 11am PST, Silver is down $0.90, trading at $33.78 per ounce on active volume.

PLATINUM

The Platinum price is down $37 per ounce in a reaction to Impala mine settlement. Production at Impala Platinum’s Rustenburg operations - which has been suspended since the start of a strike in January over wages, costing the company around a hundred thousand ounces in lost output - is set to restart today.  At 11am PST, Platinum is trading at $1,665 per ounce, down $37, and at a $38 discount to gold.