Daily Market Report 9/30/14

GOLD

Like I have stated earlier, it was the last day of the month and the third quarter and Gold reaches the lowest price for the year. This morning Gold hit a new yearly low of $1,204 per ounce before finding bargain buyers. The real question is: Is this the turn that I have been waiting for? Well, I didn’t see the intra-day reversal on high volume I was hoping to see. However, there was a lack of a major seller or a large amount of stop-loss selling; and there was a quick $6 per ounce rally right before the close of CME exchange trading at 10:30am PDT. My gut tells me that until we see Gold trade (and show trader support) above $1,230 per ounce, we continue to be in a short term bear market.

At 11am PDT today, Gold is trading at $1,210.50, down $6.50 for the day on excellent volume.

SILVER

Silver virtually followed Gold lower during trading this morning, but was amplified. Silver reached a four year low this morning of $16.84 per ounce, before rallying off the lows. Most of the U.S. trading was right above and below the $17 per ounce level. Similar to Gold’s trading we saw a quick rally of $0.15 right before the CME closed. I believe this was some short covering. After today’s 3% decline, I still believe the bears have control of this market. Let’s see what happens in overnight Asian trading. At $17 per ounce, Silver is an extraordinary value (over 70-to-1 Gold/Silver ratio) and VERY close to a bottom.

At 11am PDT today, Silver is trading at $17.08, down $0.48 per ounce on increasing volume.