Daily Market Report 5/9/13

GOLD

Today Gold has been consolidating in the $1,460 to $1,480 per ounce area. The sentiment in the trading pits has recently changed. Most professionals on the trading floor that I speak with are now buying on dips, versus remaining neutral or selling on rallies. This is very positive for the short term direction of Gold. However, I still need to see Gold breakout above $1,500 per ounce to confirm that the long term bullish trend line is still in place. Physical demand for the popular Gold investment products is running at record levels, while paper Gold (the ETF’s) continue to see their holdings drop.

At 11am PDT today, Gold is trading at $1,473, unchanged for the day on average volume.

SILVER

Silver continues to trade in a very tight price range. Today’s range was $23.70 on the low to $24.15 on the high. There appears to be sizeable selling when the price goes above $24 per ounce. At 11am PDT today, Silver is down $0.07, trading at $23.83 per ounce on average volume.