Daily Market Report 7/19/13

GOLD

Gold was higher today as the U.S. Dollar weakened versus the Euro and Yen. This is now the second week in a row that Gold has moved higher, consolidating in the $1,270 to $1,300 per ounce price range.

At 11am PDT today, Gold is trading at $1,294 per ounce, up $8 per ounce on average Friday volume.

Senators ask Fed Chairman Bernanke about Gold

When Mr. Bernanke was asked about the falling price of Gold, which is down nearly 25% this year, Bernanke admitted he doesn’t understand the yellow metal. “No one really understands Gold prices,” Bernanke told the Senate Banking Committee, adding he doesn’t pretend to either. Bernanke had more things to say about the yellow metal. Calling it “an unusual asset,” the Fed Chairman noted people hold Gold both as “disaster insurance” and as an inflation hedge. He expressed surprise about the latter, noting “movements in Gold” don’t predict inflation well.

SILVER

Considering that Gold is trading at the higher end of its recent trading range, I am disappointed with today’s $0.04 increase in the price of Silver. I really want to see Silver move past the $20 per ounce resistance level.

At 11am PDT today, Silver is up $0.04, trading at $19.52 per ounce on light volume.