Daily Market Update 04/16/12

GOLD

At 11am PDT, Gold is trading at $1,651.70 per ounce, down $8.50 on average trading. Gold is showing support at $1,645.00 to $1,655.00. Though it did quickly drop below and rise above that range, it quickly returned back to this intraday trading range.

Looking at today’s calm trading volatility shows us how gold is in the process of building a nice base before the next run. With the Hindu gold gift giving Akshaya Tritiya Festival coming up, and census data coming from China showing an increase in buying (see our Weekly Market Report for details) we see this as being a fantastic time to buy, especially since this new base is on the low end of the last 100-day trading range.

SILVER

At 11am PDT, Silver is up $0.17, trading at $31.56 per ounce on about normal trading volume.

With the new lowered margin requirements issues by the COMEX on Silver and Palladium, silver has decided to not follow Gold’s lead today, but not by much.