Daily Market Report 2/12/14

GOLD

Over the past year, many of the professional commodity traders (PCT) have developed a strategy of shorting (selling) Gold on any rally, then covering the short sale (buying back) when it drops. This was a profitable strategy during 2013. Now, having talked to a number of these PCTs, I see they are beginning to re-think this strategy and have stopped shorting Gold. This morning I am seeing a lot of professional short covering as Gold approaches $1,300 per ounce. This morning Gold made its first attempt in 2014 at reaching $1,300 per ounce, hitting $1,296.60 before seeing profit taking.

At 11am PDT today, Gold is trading at $1,294 per ounce, up $4 per ounce on excellent volume.

SILVER

Silver was playing catch up this morning with yesterday’s big move in Gold, rallying to $20.43 before seeing some light selling. At 11am PDT today, Silver is up $0.15 per ounce, trading at $20.35 per ounce on good volume.