Daily Market Report 4/1/13

GOLD

The Gold price continues to stay in a very tight trading range, as many European financial markets are closed for the Easter Monday Holiday. Today’s high/low has ranged from $1,601 per ounce, to a low of $1,594 per ounce. At 11am PDT today, Gold is trading up $3.50 per ounce, at $1,600.50 per ounce on light volume.

Gold’s consolidation is over and it’s time to buy more

Gold reached an all-time record high of $1,923 per ounce September 6, 2011 after rallying from $1,478 on July 1, 2011. This $445 rally in just 66 days was followed by a quick correction, which drove the value down to $1,535 by September 26, 2011. Since that time, Gold has been in a consolidation phase. Considering that Gold had a dramatic bull market for ten years this volatility was expected. Remember, Gold had increased from $276 per ounce in 2001, to $1,923 in 2011; an annualized average increase of 18.16% per year.

Now, for the past nineteen months the Gold price has been in a consolidation phase that was badly needed before the next leg higher. With the fundamentals for Gold ownership looking better and better every day, I believe the consolidation phase is over. With Gold at the current $1,600 per ounce price, it represents the best precious metal investment, with an unbelievable risk/reward ratio. Gold’s long term support price of $1,535 per ounce has been tested three times. Gold is now ready to move towards its long term resistance level of $1,800 per ounce, which could easily be followed by a good possibility of setting all-time record highs above $1,923 per ounce.

SILVER

Silver market trading has been very disappointing with Silver fighting to stay above $28 per ounce level, while Gold is firm in the $1,600 per ounce level. At one point this morning Silver reached $27.85 before seeing any buying volume. At 11am PDT today, Silver is trading at $28.03 per ounce, down $0.37 per ounce on moderate trading.