Daily Market Report 8/23/13

GOLD

A combination of a bullish Chinese manufacturing data report and a drop of 13.4% in July new home sales in the U.S., the largest drop since October 2012, caused Gold to rally sharply this morning. I would expect to see some resistance at the $1,400 per ounce barrier, but as I forecasted earlier this month Gold should be in the $1,400 per ounce area by month end.

At 11am PDT today, Gold is trading at $1,394 per ounce, up $21 per ounce on better than average volume.

SILVER

Silver is off and running with the next stop $24 per ounce. As Gold rallied this morning, Silver moved sharply higher reaching $23.93 per ounce on one point before seeing some light selling. Silver is doubling the Gold’s percentage increase for today and the past week. The Silver/Gold ratio is now down to 58 to 1.

At 11am PDT today, Silver is up $0.86 per ounce, trading at $23.88 per ounce on excellent Friday volume.