Daily Market Report 6/24/16

GOLD

Wow! Gold traded at a low of $1,251 late yesterday afternoon, as it appeared that the British were going to vote to stay in the European Union. Some market analysts were predicting that Gold could test the $1,200 long term support level if the Brexit vote was to remain in the Union.

However, at about 6pm PDT, the Brexit vote started to change and Gold started to rally. By 9pm PDT last night, when it was clear that the British were going to leave the European Union, the price of Gold rallied over $100. Gold reached a high of $1,357 before sellers appeared, as many of the European stock markets were down over 10%.

Why is Brexit causing Gold to rally? It is the concern that this could be a harbinger of a breakup of the European Union. A breakup could be caused if other economically strong members of the 28 nation European Union follow Great Britain’s exit. Plus, with the U.S. Dollar increasing in value versus the British Pound and Euro, it’s a good bet that the Federal Reserve will not raise interest rates this year.

At 11am PDT today, Gold is trading at $1,318 per ounce, up $57 per ounce on heavy volume.

SILVER

Silver jumped up with Gold, reaching a high of $18.35, a new 2016 high, after trading at $17.25 yesterday. Today’s trading volume for both physical and paper Silver investment items is very strong. At 11am PDT today, Silver is up $0.44 per ounce, trading at $17.76 on excellent volume.