Another Exciting Day For The Gold Markets

GOLD

Yesterday was another exciting day in the Gold market. At 11am PT yesterday Gold was trading at $1,964 per ounce. Then, the Federal Reserve released the minutes from the July meeting. In those minutes it was made clear that the Fed lacked commitment to any more quantitative easing (QE) in the face of their dire warning for the U.S. economy.

The Gold market reacted to Federal Reserve minutes and starting falling. Gold closed in the U.S. aftermarket trading at $1,930 per ounce. When overseas trading in Asia ended, the price reached a low of $1,922 per ounce. When it started trading in Europe it appeared that we were going to test the $1,900 support level, but that didn’t happen. Gold trading in Europe hovered between $1,930 and $1,950 on excellent volume. When we rolled into U.S. trading, Gold firmed up above $1,930.

I initially was surprised to see the strength in the Gold market last night, keeping from testing the $1,900 support level. That strong demand just confirms my $2,200 year-end target. At 11am PT today, Gold is trading at $1,944 per ounce, down $20 on good volume.

SILVER

Silver followed Gold down, reaching a low of $26.61 in Asian markets. Demand picked up in Europe and Silver moved back over the $27 support level. At 11am PT today, Silver is trading at $27.16 per ounce, down $0.17 on excellent volume.