Daily Market Report 2/14/14

GOLD

Gold is trading higher today, extending gains for the eighth straight session. Gold broke above the key $1,300 per ounce resistance level for the first time in more than three months. A fall in monthly retail sales and a rise in weekly jobless claims helped fuel weakness in the U.S. dollar, luring traders to the perceived safety of Gold. I am also seeing a sizeable amount of technical buying once Gold showed excellent price support above $1,300 per ounce. Gold tested its next short term resistance level of $1,320, reaching $1,321, but sold off on short term profit taking. At 11am PDT today, Gold is trading at $1,317 per ounce, up $16.50 per ounce on sizeable volume.

SILVER

Finally, today we are seeing Silver show the excellent demand and price strength its been lacking. As I have been saying for weeks, when Gold breaks above $1,300, Silver needs to move above $21 per ounce to drive out the short seller. This morning, Silver broke out of its recent trading range and short covering drove it well past the $21 per ounce level, reaching $21.47 at one point. At 11am PDT today, Silver is up a whopping $0.90, trading at $21.32 per ounce on excellent volume for a Friday.