Daily Market Report 06/18/12

GOLD
Sunday’s Greek election results reduced Gold bullion’s safe-haven appeal. Gold’s initial reaction was to fall 1% in value, even as the euro hit a one-month high against the U.S. dollar, which would normally support Gold the price. However, after Gold reached $1,607 per ounce it came roaring back on heavy buying to virtually unchanged levels.

I am very pleased with the behavior of Gold, now holding above the $1,600 support level for five days. I believe we are in the last stage of Gold’s consolidation phase, and it starts the move to over $2,000 per ounce from here.  At 11am PDT, Gold was trading at $1,629 per ounce, up $2.60 per ounce in active trading. This is the seventh day in a row Gold has increased in value.

Tom Fitzpatrick, one of Citibank’s top technical analysts stated today on CNBC that he feels Gold will be $2,050 per ounce by year end and $2,400 within a year, with the possibility of reaching $3,500 per ounce.

SILVER
Silver continues to stay within the $28-$29 per ounce trading range. Hopefully, the FOMC June 20th meeting will release some QE3 type news to drive Silver higher. At 11am PDT, Silver is up $0.08, trading at $28.80 per ounce on active trading.