Daily Market Report 5/27/16

GOLD

Since Tuesday (the day Gold broke below its $1,250 support level), Gold has seen a bull/ bear price war on heavy trading volume. I’m sorry to say that, based on today’s trading, it appears that the bears have won this short term battle. I expect to see Gold test the $1,200 per ounce long term support level next week.

This year Gold has rallied from $1,060 to over $1,300 per ounce, and a correction back to the $1,200 support level represents a great opportunity to add to your precious metal holdings. I believe this decline could be the final clean out before a major rally, I’ll explain why in next week’s “Weekly Market Report," which will be out on Tuesday. At 11am PDT today, Gold is trading at $1,212, down $9 per ounce on better than average Friday volume.

SILVER

Silver has declined with Gold over the past few trading days, reaching a low of $16.12 this morning. I would expect to see Silver test its $16 per ounce support level next week when Gold tests the $1,200 level. At 11am PDT today, Silver is down $0.09, trading at $16.25 on good volume.