Daily Market Report 4/6/15

GOLD

This morning Gold was able to react to Friday’s disappointing Nonfarm Payroll report, opening up $11, at $1,212 per ounce, and moving to a high of $1,224.80. Currently the $1,220 level has acted has a strong resistance level, therefore it would be very bullish if Gold could move above $1,220 per ounce this week. At 11am PDT today, Gold is trading at $1,218 per ounce, up $17 on good volume.

Fundamentals for a higher Gold price continue to strengthen
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 of Gold will move above the current $1,220 resistance level, and much higher, very soon. The fundamentals for a major increase in the Gold price remain strong. Remember, last year Gold was up in every major currency except the U.S. Dollar. Why will Gold move higher in all major world currencies? Let me share some of the reasons:

1. Major military and political problems in the Middle East.
2. Worldwide quantitative easing (money printing), especially in China, Japan, and Europe.
3. Central Banks continue to trade their U.S. Dollars for Gold, thus building their Gold reserves.
4. Extraordinary physical demand for Gold and Silver investment products in China and India.
5. Global Gold production is dropping as the cost of mining increases.
6. Interest rates have reached historical lows worldwide.

SILVER

Silver quickly moved above the $17 per ounce level this morning on its way to $17.35. At that point there was some short term profit taking by the professional commodity brokers. At 11am PDT today, Silver is up $0.35 per ounce, trading at $17.10 on excellent volume.