Daily Market Update 12/27/11

GOLD

We are seeing light trading in precious metals around the world. Gold’s trading range today was from $1,589 to $1,604 on low volume. At 11am PDT gold is trading at $1,595.20, down $11.60 from last Friday’s close.

CHINA’S CENTRAL BANK RESEARCH CHIEF WANTS MORE GOLD

On Monday, Zhang Jianhua, the head of the research department at the People’s Bank of China stated “The Chinese government needs to further optimize China’s foreign exchange assets portfolio and to seek relatively low entry point to buy gold assets”. China has $3.2 trillion in foreign exchange reserves (mostly U.S. Dollars) and less the 1% is in Gold.

Iranian Rush to Buy Gold as national currency plunges

12-26-2011 -- Iranians are rushing to buy gold and dollars, sending the national currency plunging, on concern the government may be unable to maintain economic stability as international sanctions tighten. State television this week showed lines of people camped out overnight in front of state banks, with sleeping bags and blankets, saying they were waiting to buy gold coins. The central bank cut off their supply as of Dec. 20 and said it’s imposing a more “just distribution” system. Under the new rules, gold paid for now will be delivered four months later, according to the state-run Mehr news agency.

SILVER

At 11am PDT, silver is down $0.38 in lackluster trading, at $28.79 per ounce. Over the past 24 hours the trading range has been from $28.56 to $29.22 per ounce.

Other Important news that affects precious metal prices:

The Conference Board’s index increased Consumer Confidence to 64.5, exceeding all estimates in a Bloomberg News survey and the highest since April. This was revised from a 55.2 reading in November, figures from the New York-based private research group showed today. The measure averaged 53.7 during the