Daily Market Report 1/7/16

GOLD

As the world’s equity markets are getting slammed, the precious metal sector is moving higher. Gold has broken over the $1,100 per ounce resistance level about a week ahead of my schedule. The strength and trading volume of this Gold rally is very impressive. Gold hit a high today of $1,109.30 as many professional traders covered their short sales, and decided to sell stocks and buy Gold and Silver. After a $49 rally this week, it would be healthy for the Gold price to slow down and consolidate its gain over the $1,100 per ounce level. At 11am PDT today, Gold is trading at $1,108 per ounce, up $15 on heavy volume.

SILVER

Silver cleared $14 and stayed after Gold broke above the $1,100 level. Demand is increasing particularly on the Asian commodity markets. Silver reached a high of $14.41 per ounce, and at that point sellers appeared but the trading was active. Silver has shown to have more market volatility than Gold, but it could also be more explosive on the upside. At 11am PDT today, Silver is up $0.30 per ounce, trading at $14.32 per ounce on the highest CME volume of the week.