Daily Market Report 1/22/15

GOLD

The European Central Bank finally made their quantitative easing announcement this morning. ECB President, Mario Draghi, launched a major government bond-buying program today, pumping 60 Billion Euros per month of new money into a sagging Euro-zone economy. This program is scheduled to end in September of 2016, which will create over 1 trillion freshly printed Euros.

What did the ECB announcement do to the Gold price? Gold was trading at $1,282 at the time of the statement and quickly rallied $22 per ounce, reaching $1,304 per ounce, back above the important $1,300 level. At 11am PST today, Gold is up $9 per ounce, trading at $1,302 per ounce on good volume.

SILVER

Based on the clearly inflationary news out of Europe this morning, Silver rallied quickly. Silver is trading very actively above the key $18 per ounce support level. At 11am PST today, Silver is trading at $18.35 per ounce, up $0.20 per ounce on excellent volume.