Daily Market Report 5/8/13

GOLD

Yesterday in the U.S., and early this morning during Asian trading, Gold tested the $1,450 per ounce support level and HELD on a very heavy volume of trading. This is the third time Gold showed sizeable demand under $1,450 per ounce. Now, Gold should breakout above the $1,490/$1,500 resistance level and continue its move higher.

Today, in the face of a very strong U.S. Dollar versus the Euro, Gold has rallied sharply on heavy demand. At 11am PDT, Gold is trading at $1,473.00 per ounce, up $21 per ounce on heavy volume.

SILVER

Yesterday Silver dropped to $23.40 per ounce when Gold sold off. Today’s low was only $23.68, but Silver continues to have a problem rallying above the major resistance $24.00 per ounce level. At 11am PDT, Silver is up $0.11 from yesterday’s close, trading at $23.90 per ounce on average volume.