Daily Market Report 12/4/13

GOLD

Recently, the value of Gold has been dramatically affected by economic news and reports. Negative news has pushed the Gold price higher, while positive U.S. economic reports have caused Gold to drop. WHY? The feeling of many professional traders is that it is all about the future direction of the Federal Reserve in regards to its monthly $85 billion stimulus program. Negative economic reports are more likely to allow the Fed’s monthly stimulus programs to continue, while positive news may cause the Fed to reduce the amount of stimulus. Remember, the more paper dollars (stimulus) the Federal Reserve creates, the higher the value of Gold will ultimately go in terms of paper money.

Today, Gold tested the $1,250 resistance level on weak economic news and a weaker U.S. Dollar versus the Euro. At 11am PDT today, Gold was trading at $1,247 per ounce, up $25 per ounce on heavy volume.

SILVER

As Gold rallied today, Silver attempted to break above the $20 per ounce resistance level. It got has high as $19.92 per ounce before seeing professional’s selling short. At 11am PDT today, Silver is up $0.65, at $19.77 per ounce on high volume.