Daily Market Report 10/9/14

GOLD

At 2pm EDT yesterday, the Federal Reserve released the minutes of its Sept 16-17, 2014 Governors meeting. During the meeting there was a heated debate among the Fed Governors over the current policy of cutting back or eliminating financial stimulus and hiking interest rates. The minutes also show concern about the rising dollar, slowing inflation, and economic turmoil in Europe and Asia. The Federal Reserve governors are obviously more worried about deflation than inflation, which could lead to another round of quantitative easing (QE4). This information caused the Dow Jones Industrial Average to quickly rally 200 points, and took the price of Gold up $15 per ounce ($1,222) and Silver rallied $0.30 per ounce ($17.42) within an hour.

I just read an interesting and informative article about the current Gold market sentiment by Mark Hulbert that I think is worth sharing.
http://www.mintstateGold.com/investor-education/Gold_market_takes_turn_for_worse/

Today, Gold picked up from yesterday’s late rally and traded in a narrow range. There was sizeable professional selling every time Gold traded above $1,230 per ounce level. The fact that Gold has now stayed above $1,200 per ounce for four days in a row is bullish. However, the fact the Gold can’t hold a rally due to professional short selling is still worrying me.

At 11am PDT today, Gold is up $18 per ounce, trading at $1,224 per ounce on average volume.

SILVER

Yesterday’s Fed announcement also caused Silver to rally in after-market trading. After today’s opening, Silver reached a high of $17.75 before it was slammed back down to $17.40 per ounce. Many professionals still feel that Silver will see $16.00 per ounce very soon and they prefer to be short.

At 11am PDT today, Silver is trading at $17.42, up $0.34 per ounce on normal trading volume.