Daily Market Report 10/16/13

GOLD

Gold traded in a narrow $1,270 to $1,288 per ounce trading range today. Considering the political events in D.C. that were changing minute to minute, this was very surprising. At 11am PDT today, Gold is trading up $9 per ounce, at $1,283 per ounce on average volume. It would be short term bullish for Gold if it could rally back above the $1,300 per ounce level.

Fitch Investors Services - one of the three major credit rating agencies - in a statement about the possibility of a U.S. debt downgrade due to political brinksmanship also mentioned that the U.S. debt has reached 100% of the GDP. This a big negative for the future value of the U.S. Dollar

Warren Buffett said both political parties should agree not to use the debt limit as a bargaining chip in the future because it is “a political weapon of mass destruction.”

SILVER

Silver held above the $21 per ounce support level today, trading in a narrow $.35 price range. At 11am PDT today, Silver is trading at $21.33 per ounce, up $0.09 per ounce on average volume.