Daily Market Report 10/15/12

GOLD

Better domestic and Chinese economic data released today caused Gold to test the $1,730 per ounce level this morning. This is a very important resistance level, and I am seeing trading volume increase dramatically (higher than every day last week) and it looks like the support price should hold. Remember, many of the largest rallies we have seen in Gold over the past eleven years have started with a drop to the resistance level which cleans out the nervous small investors. At 11am PDT today, Gold is trading at $1,737.10 per ounce, down $23.50 per ounce, on heavy volume of trading. 

In Gold-specific data, the net Comex speculative length increased just 14 tonnes to 785.4 tonnes in the week ending October 12, according to the US Commodity Futures Trading Commission (CFTC).

SILVER

Silver took its trading direction from Gold this morning, briefly touching the $32.50 per ounce support level and quickly ralling back. At 11am PDT today, Silver is down $0.85, trading at $32.76 per ounce on higher than average volume.