Daily Market Report 06/19/14

GOLD

Gold rallied $40 per ounce today based on the following factors:

1. Fed Chairwoman Janet Yellen’s statement late yesterday that U.S. interest rates will be unchanged until the middle of next year and then raise
2. A weaker U.S. Dollar versus the Euro and Yen
3. A major military escalation by the U.S. in the Iraq problem
4. Heavy trader short covering on the break above the $1,300 per ounce resistance level

At 11am PDT Today, Gold is trading at $1,312 per ounce, up $39 per ounce on heavy volume.

SILVER

Today’s Silver rally is based on the first three factors that moved Gold. Plus, Silver breaking above the $20 per ounce resistance level was a major factor that caused short covering and fresh buying in the Silver markets. At 11am PDT today, Silver is up $0.95 per ounce, trading at $20.74 per ounce on heavy volume.