Daily Market Report 10/9/15

GOLD

Gold moved higher this morning (reaching a three-week high) after minutes from the Federal Reserve’s last policy meeting showed that the Fed was in no hurry to raise interest rates. Gold moved back above the key $1,150 resistance level this morning on excellent volume. I really like the recent price activity of spot Gold trading on the exchanges. The continued strong demand every time there is weakness in the price is sending a clear message that the price wants to move much higher. Traders are looking at $1,166 as the next short term resistance level. As I have said before, $1,200 per ounce is the very important long term resistance level. A break above $1,200 per ounce would indicate we have moved Gold from a bearish outlook into a bullish direction. I continue to believe that during 2015 we will see the end of the four-year down cycle in Gold, and many professional commodity traders and precious metal experts that I have talked with recently are beginning to believe the same. At 11am PDT today, Gold is up $10 per ounce, trading at $1,158 per ounce on excellent volume.

SILVER

Silver briefly broke above the key $16 per ounce level this morning, but couldn’t hold. Considering Gold’s $10 upward move today, I am disappointed in the Silver market today. If Gold continues to stay above the key $1,150 level, Silver needs to quickly move back above the $16 level. At 11am PDT today, Silver is trading at $15.84 per ounce, up $0.02 on good volume.