Daily Market Report 8/15/14

GOLD

Gold trading was fairly uneventful today as prices remained above the key $1,300 support level. As summer winds down traders are keeping a watchful eye on events in Ukraine and the Middle East. Retail sales are the primary gauge of consumer spending and this summer’s weak numbers point to a slow start to the upcoming third quarter. If global tensions continue to escalate and economic growth indicators continue to wane, investors will move swiftly to Gold.

At 11am PST Gold is trading at $1,304.95, down $8.55 on above average volume.

SILVER

Silver remains steady in the London trading hours today as the 117-year old London Silver Fix was laid to rest, replaced with the LBMA Silver Price. Silver producers don’t see the new fix affecting day-to-day operations but do welcome the change. “From Pan American’s perspective, it’s not a big deal because we don’t actually price much of our metal on the fix, said Rob Doyle, chief financial officer at Pan American. He said the company mostly sells using the live spot market although their silver concentrates are priced on the fix. “We do have some exposure to that mechanism,” Doyle added. To learn more about the new silver fixing system please click here.

However, in the U.S. trading hours Silver has continued to fight the battle to rise above the important $20 level, but it looks like the bears have won for today. With Gold over $1,300 it would be a good sign to see Silver above $20 based on recent trading, however, I believe this to be temporary. Based on the last few months trading range, Silver looks extremely cheap right now.

At 11am PST Silver is trading at $19.60, down $0.31 on normal volume.