Daily Market Report 12/4/15

GOLD

This morning the European Central Bank cut its deposit rate to -0.30 percent, this rate determines the cost of borrowing for banks at the ECB’s weekly auction. This news, plus the U.S. economy adding 211,000 jobs in November and keeping the unemployment rate steady at 5%, caused precious metals to rally sharply. After Gold reached a six year low of $1,045 yesterday the price has rallied $42 per ounce today on excellent trading volume. Next week’s trading is very important, Gold can continue the rally and move over $1,100 and become bullish or Gold can sell-off and make new lows. At 11am PDT today, Gold is trading at $1,084 per ounce, up $22 from yesterday’s close, on excellent volume.

SILVER

Silver reached a low of $13.81 yesterday and has rallied with Gold, up $0.70 this morning. Silver continues to show excellent demand when it breaks below $14.00 per ounce, but Gold is the key to the future direction of the price. At 11am PDT today, Silver is up $0.42, trading at $14.52 with strong volume for a Friday trading session.