Daily Market Report 7/11/13

GOLD

Yesterday the June 18 & 19 Federal Open Market Committee (FOMC) meetings minutes were released to the general public. Those minutes showed that about half of the Federal Reserve’s 19 senior officials felt that they would support ending the central bank’s monthly purchase of $85 billion in bonds by year-end and not any earlier unless the unemployment number, currently 7.6%, drops to 6.5%. The meeting minutes also showed that many of other members felt asset purchases would likely be needed into 2014. This news is bullish for Gold, and Gold quickly rallied up $15 per ounce, reaching $1,266 per ounce.

During a press conference, after the release of the FOMC minutes, Chairman Bernanke said that the Fed would have a highly accommodative policy for the foreseeable future while inflation remains low and the official unemployment rate remains stagnate. Bernanke also stated that the Fed would keep interest rates very low into 2015. After those statements, Gold already up $20, kept moving higher, reaching a high of $1,299 per ounce at one point, before seeing sizeable selling at the $1,300 resistance level.

The above news combined with today’s weaker U.S. Dollar helped Gold rally for the fourth day in a row.

At 11am PDT today, Gold is trading at $1,280, up $30 per ounce on heavy volume.

SILVER

As Gold made its major move up last night and this morning Silver broke above the key $20 per ounce resistance level, reaching a high of $20.31 per ounce.

At 11am PDT today, Silver is up $0.70 per ounce, trading at $19.94 per ounce.