Daily Market Report 9/18/12

GOLD

According to many professional commodity traders we are seeing healthy consolidation or a short breather for Gold under $1,780 per ounce during a major bull market move. The feeling is that Gold should break above the 2012 highs of $1,790 and hit the resistance level of $1,800 per ounce by month end. At 11am PDT, Gold is trading at $1,769.10, up $5.60 per ounce on normal volume.

South African Mining Strike Continues

Over the past six weeks, strikes have cost South Africa nearly $563 million in lost Gold and Platinum production, President Jacob Zuma announced Monday. The strikes that have stopped work at seven Gold and Platinum mines also spread to the chrome sector, according to the South African Press Association. When this strike is settled, and it could happen this week, Platinum should sell off and this would be a great opportunity to purchase if it dropped $50 or more.

SILVER

Silver’s bull move has been more aggressive the Gold, reaching $34.98 per ounce last week, with volatility greater than Gold. Therefore, when Silver broke above $35 per ounce earlier today, we saw volume pick and technical chart program selling. If Silver can close above $35 per ounce it could easily run up a couple dollars very quickly on short covering. At 11am PDT, Silver is trading at $34.72, up $0.37 per ounce on average volume.