Daily Market Report 05/09/12

GOLD
What a day yesterday and today was in the Gold pit. Volume today is almost double what a normal day would be and the excitement when Gold dropped below $1,600 was off the charts. Considering the strength of the U.S. Dollar and the problems in Europe, it isn’t surprising to see Gold make a new yearly low of $1,577.40, but that is when the rally began. If the trading in the aftermarket continues, this could be an inter-day reversal, which is very bullish. When a commodity market makes new lows and closes the day on the highs it’s called an inter-day reversal. At 11am PDT, Gold is trading at $1,597, which is the high for the day and down only $7.60 from yesterday. If you are looking for a good entry point to buy or add to your holdings of Gold, today is an excellent day.

SILVER
Silver, Platinum and Palladium followed the Gold trading today. Silver made a new low of $28.54 per ounce, then we saw sizeable demand and the Silver market quickly rallied back to $29.30 as the volume picked up. At 11am PDT, Silver is trading at $29.44, down only $0.09 per ounce from yesterday and closing at the high of the day. The Silver/Gold ratio today is 54 to 1, which makes it an excellent time to pick up some Silver.