Daily Market Report 8/21/15

GOLD

After Gold quickly moved above the $1,150 per ounce resistance level yesterday, many professionals started covering their short sales, driving the price to the next resistance level of $1,170 last night. This morning the price dropped back to trade in the $1,160 area. The next major resistance level is $1,200 and a confirmed move above that level could bring in serious speculative and long term buying.

Ross Norman of Sharp Pixley said the following in his commentary yesterday: “Gold is trading with a small backwardation, which suggest tightness in the market (possibly because of the red hot physical demand or possibly as a pre-amble to a market squeeze to the upside). Backwardation is a rare and un-natural phenomenon in Gold and certainly indicates something is afoot of a bullish nature - thirdly physical demand is looking good.”

I’ll explain backwardation in next Monday’s Weekly Market Report.

At 11am PDT today, Gold is trading at $1,158 per ounce, up $7 on excellent volume.

SILVER

Silver doesn’t have the same amount of interest as Gold this morning. After reaching a high of $15.71 this morning it quickly sold off to $15.10 on heavy volume. The price bounced back with bargain buying. At 11am PDT today, Silver is down $0.21, trading at $15.30 per ounce on average volume.