Daily Market Report 2/21/13

GOLD

Yesterday Gold dropped $30 per ounce right after the CME commodity exchange opened in N.Y. on rumors that a large commodity hedge fund had been forced to liquidate its holdings. Later in the day the Federal Reserve released minutes from its January 30 meeting, showing our central bank may slow or stop buying the $85 billion worth of assets monthly before the unemployment rate drops to 7%, another bearish factor for Gold.

Selling accelerated in Asia early this morning after Gold slipped below the key resistance of $1,575 an ounce. Gold completed a bearish technical formation known as a "death cross", when its 50-day moving average broke below its 200-day moving average. After reaching $1,554 per ounce Gold find bargain and major institutional buyers of sizeable quantity. At 11am PDT today, Gold is trading at $1,578 per ounce, up $7 per ounce on heavy volume.

Last night I read an interesting article in the Arabian Money newspaper called “Money printing damage to markets is already done whatever the Fed does next, Gold’s time still coming”. The short article makes some excellent points and is worth reading. Click on the following link. http://www.mintstateGold.com/investor-education/cat/news/post/money_printing_damage/  

SILVER

Silver reached a low of $28.27 per ounce early this morning before following the Gold rally. We have support at $28.30 per ounce and major support at $28, with short term resistance at $29. At 11am PDT Today, Silver is trading up $0.15 per ounce, trading at $28.65 on above average volume of trades.