Daily Market Report 2/3/16

GOLD

This morning we saw a weaker U.S. Dollar, lower equity markets, and positive signs from China about an improvement in their economy. These are all the ingredients for a higher Gold price, and Gold is up $15 per ounce. The next resistance level is $1,150 per ounce and that should come quickly. At 11am PST today, Gold is up $15.60 per ounce, trading at $1,143.60 on excellent volume.

SILVER

Silver is off and running, breaking above the key $14.50 per ounce resistance level. When Silver firmly broke above $14.50 this morning the short sellers ran to cover their sales and the price quickly moved to $14.78 on excellent volume. I expect to see some price consolidation after this breakout and then on to $15 per ounce. At 11am PST today, Silver is trading at $14.76 per ounce, up $0.42 on excellent volume.