Daily Market Report 1/3/13

GOLD

Yesterday we finally saw the reaction to precious metals as a result of Tuesday’s Fiscal Cliff legislations, and it was very bullish. Gold was up $13 per ounce on the highest volume of trading I have seen in the past two weeks. Gold did reach $1,695 per ounce yesterday with Japan and China closed for the holiday. Today, in the face of a strong U.S. Dollar versus the Euro (a negative for Gold) we are seeing some consolidation in the Gold price, right around the $1,675 per ounce support level. I expect to see Gold’s short term resistance level of $1,700 per ounce tested very soon. At 11am PDT today, Gold is trading at $1,675 per ounce, down $14 per ounce on average volume.

SILVER

Silver traded today in a narrow $0.65 range, reaching a low of $30.56 at one point. Silver’s short term trading range showed support at $30 per ounce and $31.50 as resistance. At 11am PDT today, Silver is down $0.37, trading at $30.64 per ounce on average volume.