Daily Market Report 1/14/15

GOLD

What is truly amazing about this year’s $50 rally in the Gold price is that it is happening in the face of a collapsing oil price and with the U.S. Dollar trading near a 7-year high. In past years Gold would sell off as the U.S. Dollar rallied versus other world currencies. History has shown us that a higher oil price is bullish for Gold and a lower oil price is negative for the Gold price.

So, why is Gold rallying in the face of these historically negative factors? Concerns of a pending quantitative easing in Europe, Japan, and China (which decreases the value of paper money) and extraordinary physical demand from Asia.

At 11am PST Today, Gold is trading at $1,235 per ounce, up $1 per ounce on excellent volume.

SILVER

Silver is having a difficult time staying above the $17 per ounce price level today. Many short term traders and technical analysts believe that Siilver is an excellent short above $17 with the possibility of covering around $16.50 per ounce.

At 11am PST today, Silver is trading at $16.93 per ounce, down $0.17 per ounce on better than average trading volume.