Daily Market Update 04/11/12

GOLD

Gold has consolidated its Tuesday’s gains, trading in a very narrow $10 per ounce high/low price range.  At 11am PDT today, Gold is trading at $1,659 per ounce, up $1 on a normal amount of volume.

Around 9:30am PDT on Tuesday, Gold was trading at $1,634 per ounce, and within 45 minutes gold had rallied $25 per ounce on a volume of over 50,000 hundred-ounce gold contacts.  I have asked some floor traders and commodity specialists the question, “What happened on Tuesday around 9:30am PDT that drove Gold up $25 per ounce on a heavy volume?” I have yet to get an answer, other than speculation that some hedge fund or financial institution issued a buy order. The official reason is, “concerns about eurozone debt contagion resurfaced after the yields on riskier Italian and Spanish debt climbed, underscoring gold’s safe-haven attributes.” However, I think we will soon learn what really drove the gold market higher on Tuesday.

SILVER

Yesterday’s Gold rally had little to no direct effect on the Silver market price. Silver is trading today in a very tight $0.64 range with a high of $31.95 and a low of $31.31.  At 11am PDT, Silver is down $0.03, trading at $31.63 per ounce on average volume.