Daily Market Report 7/16/13

GOLD

Gold moved higher today as the U.S. Dollar weakened ahead of concerns about Federal Reserve Chairman Ben Bernanke’s congressional testimony tomorrow. Many analysts expect this testimony could provide clues on the timing of the Federal Reserve’s tapering of monetary stimulus.

The Gold market is trading in a very important area. If Gold could breakout above the $1,300 per ounce resistance level on heavy volume it would be a very bullish sign. However, if it tests the $1,300 price level again and doesn’t have the demand to push it above that would cause the professionals traders to start shorting Gold on rallies.

At 11am PDT today, Gold is trading at $1,291 per ounce, up $7 per ounce on average volume.

SILVER

Today is the fourth day in a row that Silver was able to rally above the important $20 per ounce resistance level, and again it couldn’t hold. Hopefully, Chairman Bernanke’s testimony tomorrow will give it the news needed to stay above $20 per ounce.

At 11am PDT, Silver is up $0.12 per ounce, trading at $19.96 per ounce on average volume.