Daily Market Report 9/14/12

GOLD

Gold is making a major bull move, and the next minor resistance level is $1,790 (the 2012 high), with major psychological resistance at $1,800. We should have excellent support at $1,735.

Due to the Federal Reserve’s concern over the jobs market and unemployment, and banks lack of eagerness to lend money (banks are sitting on $1.6 trillion in reserves), the Fed announced the following QE3 plan, in the hopes of fueling more spending which would lead to more hiring, and inspire banks to loosen the purse strings:

• Fed said it would add $23 billion of mortgage bonds to its portfolio by the end of September, plus continue at a pace of $40 billion in purchases each month for an unlimited time
• maintain low interest rates until mid-2015
• continue Operation Twist

To read more about the Fed’s QE3 announcement, please visit:
http://www.mintstategold.com/investor-education/fed_launches_QE3/

The Federal Reserve’s QE3 announcement yesterday is driving up all metals, equities and bonds, while driving down interest rates and the value of the U.S. Dollar. Gold under $1,800 is still a good value but we could be seeing it break above $1,800 next week, so if you want to add to your Gold holdings I would act quickly.

 At 11am PDT, Gold is trading at $1,771.70 per ounce, up $4.50 on slightly above average volume.

SILVER

Silver’s price performance in the past week has out-performed Gold, and we are hitting a major resistance level at $35 per ounce.  When Silver breaks above $35 it could head straight to $40 with very little resistance in between. So, if you are thinking about adding Silver to your portfolio, I would act quickly.

At 11am PDT, Silver is trading at $34.64 per ounce, down $0.04 on slightly higher than normal volume.

PLATINUM & PALLADIUM

Both of these metals have been the star performers for the past two weeks. I would not chase these metals right now and recommend taking a wait-and-see position before buying or selling Platinum or Palladium.

At 11am PST, Platinum is trading at $1,714 up $34, and Palladium is trading at $695 up $8.