Daily Market Report 12/15/16

GOLD

It looks like the Fed announcement of a .25% rate increase has woken up the commodities market after a couple of days of slumber. Following the Fed announcement, the US Dollar is hitting a 14 year high and, as expected, metals have lowered. With Gold dipping below the $1,160 level, day traders had to cover their positions and sell into the market, doubling the activity and typical trading volume. Additionally, several areas of the physical Gold market are having a hard time keeping up with production demand, creating a fantastic opportunity to add to your positions. My first recommendation would be Pre 1933 US $20 Gold and some European pieces as well. Their premiums are low right now and they provide a lot of upside potential. At 11am PST today, Gold is trading at $1,131 per ounce, down $31 on heavy volume.

SILVER

It is just like Silver to try to outdo Gold. It’s not uncommon to see Silver have a greater percentage drop when Gold is down, which is exactly the case right now, with Silver fighting around the $16 level. The good news is that Silver’s behavior works both ways, and there is a lot of upside potential for a percentage increase as well. Activity in this market is almost 250% higher than normal, a sign that day traders are trying to cover their positions. This is another great reason to start adding to your positions. At 11am PST today, Silver is trading at $15.98 per ounce, down $1.17 on huge volume.