Daily Market Report 06/20/14

GOLD

Yesterday, Gold soared over $40 per ounce on the highest trading volume of this year. Over 238,000 hundred ounce contracts were traded on the CME - an extraordinary number considering that there were only 88,000, the average trading volume, traded on Wednesday. I can attribute 50,000 contracts to short covering by professional traders who quickly covered their short positions when Gold moved above the $1,300 per ounce resistance level. That leaves 100,000 contracts, or 10,000,000 ounces, that someone decided to purchase yesterday, for August delivery.

Gold showed great support for the new higher levels this morning, with very few professionals selling Gold on Friday to eliminate any over weekend risk. At 11am PDT today, Gold is trading at $1,315 per ounce, up $3 per ounce on excellent volume.

SILVER

Yesterday, Silver didn’t just break above the $20 per ounce level, the Silver price destroyed the very important $20 per ounce resistance barrier. Today, Silver is continuing to show a higher volume of trading and strong international demand. At 11am PDT today, Silver is up $0.16 per ounce, trading at $20.90 on excellent volume.