Daily Market Report 8/11/15

GOLD

This morning Gold continues its breakout above the key resistance level of $1,100 per ounce. Today, China devalued its currency approximately 2%, which caused the Yuan to fall to the lowest level in 3 years. Weak domestic economic data drove the Chinese central bank to devalue its currency. This move makes Gold more expensive in Chinese Yuan and could have been a negative for Gold. However, currency instability does give excellent support to the Gold price and did cause the U.S. Dollar to weaken. This morning Gold tested $1,120 resistance level, reaching a high of $1,119.50 per ounce. At that point there was some short term profit taking. It would be extremely bullish if Gold could consolidate in the $1,100 to $1,120 per ounce price range for the balance of this week. At 11am PDT today, Gold is trading at $1,108 per ounce, up $3 per ounce on excellent volume.

SILVER

This morning Silver hit a high of $15.44 per ounce, then dropped back to establish a new trading range. It’s a major positive to see Silver stay above $15, and consolidate in the $15.10 to $15.40 per ounce trading range. At 11am PDT today, Silver is up $0.02, trading at $15.32 per ounce on good volume.