Daily Market Update 9/16/11

GOLD

At 11am PDT, Gold is trading at $1,809.33, up $18.53 per ounce on heavy volume.

After gold falling below the $1,800 level, we saw a large increase in physical gold buying come into the market. However, the fact that gold rallied so quickly on Friday with very heavy volume, really says a lot. This could have been a clean-out period just before gold takes its next run to $1,900 an ounce. This is a good bullish time to buy, since the traders look to be adding to their positions on the possible news of financing Greece’s debt issues being addressed going into the weekend.

SILVER

Silver is up today $.66 per ounce at 11am PDT, trading at $40.67 per ounce with higher than average trading volume. Plus, after two days trading around and below the $40 trading level, Silver is following Gold’s lead. This was most likely a time where traders cleaned out their weak hands to take advantage of the next run on Silver to the mid $40’s.