Daily Market Report 05/28/14

GOLD

Trading volume has picked up in the Gold pits as the price moved lower this morning. Yesterday, when Gold declined $26.20 per ounce, the volume was over 250,000 CME June hundred ounce contracts (the highest volume this year). Today, Gold is finding support around the $1,255 per ounce area. As the June month contracts come due the volume of August contracts is building up. The volume of the two most active CME gold contract months is over 260,000 today. At 11am PDT today, Gold is trading at $1,259 per ounce, down $7 per ounce on heavy volume.

SILVER

Considering Gold’s $33 drop in the past two days, Silver has been surprisingly strong, holding above the key $19.00 per ounce support level. Silver tested the $19 per ounce support level this morning, reaching $18.96, but quickly rallied back above the $19 level. At 11am PDT today, Silver is down $0.05 per ounce, holding at $19.05 per ounce on excellent volume.