Daily Market Report 8/2/12

GOLD

At 11:15pm PDT on Wednesday August 1, 2012 the Federal Reserve FOMC announced they weren’t going to provide any new monetary stimulus at this time. The U.S. Dollar moved higher versus the Euro, and Gold dropped fast from $1,607 to $1,591 per ounce. Gold then quickly rallied back to above the $1,600 level on excellent volume. 

Today, Gold dropped below the $1600 level again, due mainly to the weakening Euro versus the US Dollar. This allowed a lot of the day traders to take advantage of a break on the new floor that Gold is developing. I think once these traders clear out their positions, it won’t be long until Gold rises above the $1,600 level again. At 11am PDT, Gold is trading at $1,586.90, down $14.20.

SILVER

Silver needs to get back above $28 for it to stay short term bullish. At 11am PDT, Silver is down $0.40,  trading at $27.14 per ounce on normal volume.