Daily Market Report 7/12/13

GOLD

Gold sold off today, as the U.S. dollar strengthened and professionals took some short term profits. This week we have seen the biggest weekly gain for Gold in nearly two years. After watching Gold rally $66 (5.4%) since last Friday it is important to watch the key $1,300 per ounce resistance level for a breakout. While talking to professional commodity traders I noticed that many of them have switched from shorting Gold on rallies to buying Gold on dips. This is a very positive fundamental change in the attitude of traders about Gold.

At 11am PDT today Gold is trading at $1,279 per ounce, down $1 on average light volume.

Bloomberg Professional Traders Survey

Bloomberg surveyed 31 professional Gold traders on July 11th and 19 expect prices to rise next week, 9 were bearish and 3 neutral, the most bullish in five weeks after Federal Reserve Chairman Ben S. Bernanke said the U.S. still needs stimulus. Unprecedented money printing by central banks since the global recession boosted bullion buying as a hedge against inflation.

SILVER

Silver has traded above the key $20 resistance level both Thursday and today, but has been unable to hold that level. After reaching a low of $18.17 per ounce on June 28th Silver has rallied up 10%, but to turn short term bullish it needs to close above $20 per ounce for at least three trading days.

At 11am PDT today, Silver is down $0.12 per ounce, trading at $19.82 per ounce on light weekend type volume.