Daily Market Report 03/15/12

GOLD

After Gold broke below $1,681 per ounce, the 200 Day moving average, stop losses were hit and Gold dropped to $1,634 in late trading yesterday before bargain buyers came in with sizeable demand. Right now I am looking for a little consolidation in the $1,630 to $1,670 per range.  On the way up we need to move above the first line of resistance $1,681 which was the 200 Day moving average. At 11am PDT, Gold is up $19.10, trading at $1,661.30 per ounce on excellent volume.

Yesterday was the 112 anniversary of  U.S. gold on the Gold Standard, which was ended by President Nixon in 1971. Please read the following link to better understand what the original purpose for a U.S. Gold Standard.

http://www.mintstategold.com/investor-education/1900_us_adopts_gold_standard/

SILVER

Silver’s correction reached a low of $31.97 per ounce in overnight trading before massive buying appeared from China and India.  $32 per ounce is definitely a major support level. It would be great to see Silver consolidated in the $32 to $33 per ounce level, but history has shown that the volatility is just as strong on the upside as downside and $1.00 moves are highly possible. At 11am PDT, Silver is at $32. 70, up $0.90 per ounce on heavy volume.