Daily Market Report 08/06/14

GOLD

Gold futures jumped $22 and moved back above the important $1,300 per ounce level today, the most in six weeks in New York. Signs of escalating tension between Ukraine and Russia fueled today’s demand for precious metals. The strong Gold demand based on the Ukraine/Russian event countered the recent strength in the U.S. Dollar. This suggests outside geo-political influences are encouraging buying as a safe haven investment as the Dollar rallies. This morning, NATO said there’s a risk of Russia sending troops into Ukraine under the “pretext” of a humanitarian or peacekeeping mission after President Vladimir Putin massed soldiers on his country’s western border.

From a technical basis, Gold price movement today puts it in a positive mode. The ability to generally hold the 200 day moving average at 1289.30 is impressive and the market’s ability to penetrate the 100 day moving average at 1299.10 and 1305.50 make these key areas of support.

At 11am PDT today, Gold is trading at $1,307 per ounce, up $22 per ounce on heavy volume.

SILVER

Today’s $22 rally in the Gold market helped Silver move back above the key $20 per ounce support/resistance price level. Physical demand for Silver investment products is increasing on a global level. At 11am PDT today, Silver is up $0.22 per ounce, trading at $20.02 on excellent volume.