Daily Market Report 7/27/12

GOLD

Today’s trading has been in a narrow $16 price range, from $1,614 to $1,630 per ounce. There was considerable short term professional selling when the price hit $1,630 earlier this morning. Based on resistance level, Gold should see selling between $1,625 and $1,630 per ounce, as that price is the high end of the recent trading range. But, like I’ve said, when Gold breaks out, and that could happen next week, above $1,625 the price could run up very quickly to $1,700 per ounce. At 11am PDT, Gold is trading at 1,623.40, up $8.40 per ounce, on average Friday type volume.

SILVER

Based on the recent strength in the price of Gold, the Silver price performance has been very disappointing. With Gold up $39 per ounce for the week (2.46%), Silver is only up $0.26 per ounce, less than 1%. Considering yesterday’s statement from Mario Draghi about the possibility of major monetary stimulus in Europe, the price of Silver should have increased more. I think Palladium and Platinum offer a better value than Silver right now. At 11am PDT, Silver is up $0.16 per ounce, trading at $27.67 per ounce on light volume.