Daily Market Report 10/6/16

GOLD

Gold hit a four month low this morning of $1,250 per ounce, a major support level, before finding sizeable buying. I believe the worst is over, Gold should find support at this level and, after a short period, start moving back to the important $1,300 level. This week’s decline was focused on cleaning out the short term speculators and weak investors. Many of these investors were hit with margin calls and stop loss sales programs and sold their holdings. Long term buyers are aggressively adding to their holdings at today’s lower price. At 11am PDT today, Gold is trading at $1,251 per ounce, down $15 on heavy volume.

SILVER

Silver is following Gold’s lead again today, hitting a low of $17.20, a four-month low. We are seeing sizeable bargain buying in the popular Silver investment products. Silver should find major support in the current price area. At 11am PDT today, Silver is down $0.57 per ounce, trading at $17.29 on heavy volume.