Daily Market Report 4/2/15

GOLD

Four times this year the Gold bears were able to drive the Gold price below the key $1,200 per ounce support/resistance level. In one instance they were able to drive Gold low enough to make a new 2015 low ($1,141.60 on March 17th). In all four instances, sizeable demand appeared on the world’s commodity exchanges and physical markets to drive the Gold price back up. While some financial institutions are still calling for Gold to reach $1,000 per ounce, I continue to believe we have seen the bottom of the market and that the price is heading much higher.

This morning two positive U.S. economic indicators were reported, U.S. jobless rates have dropped and the U.S. trade deficit has narrowed. Gold initially reacted negatively to this economic news, reaching a low of $1,195 per ounce. Again, Gold bounced back and moved over the $1,200 level.

At 11am PDT today, Gold is trading at $1,201, down $4 per ounce, on light trading volume.

SILVER

Silver couldn’t hold the $17 per ounce level this morning, trading down to a low of $16.58 this morning. Physical demand for Silver Investment products is still strong as the U.S. Mint reports 2015 sale of 12,071,000 one ounce .999 Silver eagles through the end of March 2015. At 11am PDT today, Silver is down $0.25 per ounce, trading at $16.75 on average volume.