Daily Market Report 10/3/14

GOLD

Today’s report of the U.S. Jobless rate dropping below 6% (a six-year low) caused the U.S. Dollar and stock market to surge. A strong U.S. Dollar is negative for Gold, and the price dropped to a low of $1,189 per ounce before bargain buyers and short covering came in. Gold’s support level is $1,179 per ounce (last June’s low) and it may test that level on Monday.

At 11am PDT today, Gold is trading at $1,192 per ounce, down $21 per ounce on excellent volume for a Friday.

SILVER

Silver sold off with Gold today, reaching a low of $16.71 per ounce before fresh buying and weekend short covering came in. I believe Silver will test its support levels on Monday, and it could be an excellent entry point for buyers.

At 11am PDT today, Silver is down $0.22 per ounce, trading at $16.86 per ounce on average volume.