Daily Market Report 04/26/12

GOLD
Yesterday, after the FOMC policy statement and Federal Reserve Chairman Ben Bernanke’s economic forecast speech, the behavior of gold market trading was very impressive.  The gold price is showing sizeable support in the $1,620’s and should resist any attempt of a $1,600 per ounce selloff.

On Wednesday, the bears aggressively sold off gold after no mention of any future quantitative easing in the FOMC policy statement. But, when gold hit $1,625 per ounce and trading volume picked up substantially, the price started to rally sharply.  This is the fourth time I have seen gold demand and trading volume pick up sizably when gold was at that same price area.  The gold market is telling me that “Gold doesn’t want to go down.”  The only question is, "When will it breakout above $1,700 per ounce and resume it’s move to new all-time highs?"

Right now, at 11am PDT, Gold is trading at $1,657.20, up $22.60 per ounce, on above average volume of trading. The next important price level to be surpassed is $1,670 which has substantial resistance as it is Gold’s 100-day moving average. After we break through that level, $1,700 here we come!

SILVER
Yesterday Silver briefly fell below the important long term $30 support level before seeing heavy demand. Silver is taking its lead from Gold and is up today on sizable domestic and Asian buying. At 11am PDT, Silver is up $0.70, trading at $31.12 per ounce on heavy volume.