Daily Market Report 3/26/15

GOLD

When Gold broke though the $1,200 per ounce resistance level this morning, it quickly rallied $20 per ounce. Gold reached the high of the day, $1,220, before seeing short term profit taking. For most of today’s trading session Gold has stayed between $1,200 and $1,210 per ounce. I would like to see Gold consolidate recent gains and trade in the $1,200 and $1,220 area for the next week, before moving higher. At 11am PDT today, Gold is up $7 per ounce, trading at $1,205 per ounce on excellent volume.

Apple to Buy 746 Tonnes of Gold in 2015?
I keep seeing headlines about Apple buying a large amount of Gold to make its Gold Apple Watch, but the numbers don’t make sense. 746 metric tonnes is almost 24 million troy ounces of .999 fine Gold. If each Apple Gold watch contains 2 ounces of 18kt Gold, they would need to make and sell 16 million Gold watches. At approximately $10,000 a Gold watch, that would be gross sales of $160 Billion. That isn’t going to happen in 2015.

SILVER

The Silver price spiked, reaching $17.43 per ounce, after Gold broke above the $1,200 per ounce barrier. $18 per ounce remains the key resistance level for Silver. At 11am PDT today, Silver is trading at $17.10 per ounce, up $0.12 per ounce on above average volume.