Daily Market Report 6/18/15

GOLD

Yesterday the Federal Reserve governors decided to keep the central bank’s benchmark short-term interest rate near zero. They decided not to make what would be the first increase since 2006, after determining the economy still isn’t strong enough to handle an increase. Fed officials also sharply downgraded their economic forecast for this year. They projected the economy would grow between 1.8% and 2% this year, well below the range of 2.3% to 2.7% in their last forecast in March.

The Feds non-action, combined with a lower GDP projection, is very bullish for Gold. Gold rallied sharply this morning, breaking above the important $1,200 per ounce resistance level and hitting a high of $1,206 per ounce. At 11am PDT today, Gold is up $23 per ounce, trading at $1,202 per ounce on excellent volume.

SILVER

Silver reached a high this morning of $16.49 before seeing short term profit taking. Today’s Silver trading volume for the popular July 2015 CME 5,000-ounce contract was the highest I’ve seen recently. At 11am PDT today, Silver is trading at $16.15 per ounce, up $0.10 per ounce on excellent volume.