Daily Market Report 05/02/14

GOLD

Gold rallied sharply this morning, moving back above the key $1,300 per ounce resistance level, on fresh buying. This was based on reports that the Ukrainian military is moving to take back a Russian separatist-occupied city in eastern Ukraine. Plus, two Ukrainian helicopters were shot down prompting short covering of Gold going into the weekend. The Ukrainian military activity overshadowed today’s Labor Department announcement that the U.S. added a surprisingly high 288,000 jobs in April, which lowered the unemployment rate to 6.3%. The decrease in unemployment news by itself would have sent Gold lower. At 11am PDT today, Gold is trading at $1,302, up $20 per ounce on high volume.

SILVER

Silver was trading under the $19 per ounce support level when the Ukrainian news hit the precious metal markets and quickly rallied higher, reaching a high of $19.70 per ounce. At 11am PDT today, Silver is up $0.50 per ounce, trading at $19.51 per ounce on normal volume.