Daily Market Report 01/16/12

GOLD

In the face of a major rally in the value of the U.S. Dollar versus the weak Euro ($1.2620), gold is up on the day. When we have a rally in the Dollar, gold priced in U.S. Dollars normally declines, but the Dollar rally is due to the massive and continuing debt crisis in Europe. Many of the PIIGS European Governments have gotten themselves into situations where they can’t service their enormous debt burdens. The Dollar is not higher because of improving economic news in the U.S.  At 11am PDT, Gold is trading at $1,644.20, up $9.40 on light volume.

For my technical chartist clients, the most recent Elliot Wave chart analysis suggests that the gold correction is over and it is now heading for $4,500 per ounce.  See charts and comments at:  http://www.mintstategold.com/investor-education/gold_heading_for_gains/  

SILVER

Silver is still flirting with the $30 per ounce level; it has been over $30 and back numerous times today.  Right now at 11am PDT, Silver is $30.01 per ounce, up $0.38 on the day. The trading has been very light. I really would like to see Silver stay above $30 per ounce for the week.