Daily Market Report 9/16/14

GOLD

This morning Gold reached $1,242 but couldn’t find buyers to support the breakout, so it fell back below $1,238 per ounce. Gold’s inability to rally back quickly after hitting yesterday’s low of $1,225 concerns me. I believe we will test the low of $1,225 again very soon.

The last two times the Gold price turned short term bullish and continued to rally for a couple months, it made inter-day lows and quickly rallied to close on the day’s highs on sizeable volume. I haven’t seen that yet and hopefully it will happen very soon.

At 11am PDT today, Gold is up $2 per ounce, trading at $1,236 on average volume.

SILVER

Silver is trying to consolidate in the $18.65 to $18.75 per ounce price range on light buying, but there is a lack of serious sellers. Silver will surely follow the direction of Gold, should it break down below recent lows or move back above the $1,250 level.

At 11am PDT today, Silver is trading at $18.70 per ounce, up $0.06 per ounce on light volume.