Daily Market Report 10/9/13

GOLD

A combination of lower world economic growth projections by the IMF and a sizeable increase in crude oil inventories, driving down the oil and gasoline prices (very deflationary), caused Gold to open lower this morning, reaching $1,294, below the important $1,300 per ounce support level. $1,300 per ounce for Gold has shown to be a key support level, if it holds were are going a lot higher, if it doesn’t we could see Gold continuing to decline. So, the battle line between the Gold bulls and bears has clearly been drawn, and that line is at $1,300 per ounce.

Today the bulls won the battle, at 11am PDT today Gold is trading at $1,311 per ounce, down $12 per ounce on excellent volume, but well above the support level.

SILVER

Watching Silver breakdown below the $22 per ounce support level this morning was very disappointing. At one point this morning Silver reached a low of $21.75 per ounce.

At 11am PDT today, Silver is trading at $22.01 per ounce, down $0.41 per ounce on better than average volume.