Daily Market Report 2/11/13

GOLD

Gold traded this morning as low as $1,644 per ounce as Asian precious metals were closed for the Lunar New Year holiday. The volume of sell orders picked up when Gold broke through the $1,650 per ounce support area. Today’s Gold trading could be the weak hands clean out, which is what we have seen in the past prior to a major up rally. At 11am PDT today, Gold is down $1,648.50 per ounce, down $19.50 per ounce on heavy European and Domestic exchange volume.

SILVER

As normally happens, Silver took its lead from Gold this morning and opened lower, reaching $30.80 per ounce before bargain buyers appeared. At 11am PDT today, Silver is trading at $30.95 per ounce, down $0.50 per ounce, on heavy volume.

Considering the amount of technical short selling this morning after Gold and Silver broke below their support levels at $1,650 and $31 per ounce, I am excited to see sizeable bargain buying in the face of the Asian precious metal markets being closed. We could be looking at the best buying opportunity of the year.