Daily Market Report 11/11/14

GOLD

After Friday’s $27 rally and yesterday’s $13 decline, today (maybe because it’s a holiday) Gold appears to be having a consolidation day. Earlier this morning Gold hit a $1,146 low, but quickly rallied back to $1,166 before seeing some resistances. I hope we will see Gold consolidate between the $1,150 to $1,180 range in the coming week, bring in new buyers, and building a base for a break above $1,180 and $1,200 by year end. However, another sustained break below $1,150 could lead to a fresh test of the recent lows.

At 11am PST today, Gold is up $7 per ounce, trading at $1,165 per ounce on average holiday type volume.

Yesterday, MacNeil Curry, BofA Merrill Lynch head of Technical trading, said, We are switching gears on gold from bearish to bullish, "Friday’s gains are just the beginning." Friday’s Bullish Reversal / Bullish Engulfing Candle marks the end of a 4 year decline and the beginning of a medium term bull trend. Initial targets are seen to 1241/55 ahead of 1345 and potentially as far as 1433. He recommends buying Gold on dips. I would agree with Mr. Curry, if Gold could sustain a rally above $1,180 per ounce very soon.

SILVER

Silver also showed good price strength today after reaching a $15.44 low in early Asian trading. Physical and contract demand has been increasing since Silver dipped below $16 per ounce. $16 is still a major resistance level right now, and to regain positive market sentiment we need to see it above $16 per ounce.

At 11am PST today, Silver is trading at $15.75 per ounce, up $0.09 per ounce on normal volume.