Daily Market Report 10/6/14

GOLD

This morning Gold hit a low of $1,183 per ounce after the U.S. currency weakened, sellers disappeared, and bargain buyers became interested. The rally took the Gold price back above the important $1,200 per ounce level. Although I would like to think this could be the turn, it is too early to say it, particularly because the trading volume wasn’t large enough. Today’s Gold rally is more likely another bear market rally because of the low trading volume. A real turn in the direction of the market normally requires a high trading volume. However, if Gold could build a base above $1,200 per ounce for a minimum of 3 trading days on increasing volume, I could change my mind.

At 11am PDT today, Gold is up $15 per ounce, trading at $1,207 on normal volume.

SILVER

Silver followed Gold lower in early morning trading, reaching a low of $16.67 per ounce. The bargain buying caused Silver to rally to a high of $17.35 per ounce. Silver has a major resistance level at $18 per ounce, and it could test that level very soon if Gold stays above $1,200 per ounce.

At 11am PDT today, Silver is trading at $17.28 per ounce, up $0.42 on average volume.