Daily Gold and Silver Market Commentary:-

As On Wednesday 13-08-2009

Gold opened at 945.00/946.00 and retreated as the session started, dipping to

942.00/943.00. Rallying equity markets and stronger oil helped the metal recover,

finding resistance near 950.00 and it traded lightly within a narrow range. However

the metal became well bid, and quickly push through 950, peaking at

952.00/953.00. The market later went very quiet in front of the FOMC rate decision,

finally settling at 949.75/950.75. As expected the rate was left unchanged

and gold tumbled, finding support near 945.00.

Silver opened at 1428.00/1431.00 in New York. Light selling dragged the metal

lower, slipping to 1424.00/1427.00. This move later reversed as silver climbed on

the back of rallying copper and oil. The metal remained well bid during the tail end

of the session, quickly climbing to an intraday high of 1460.00/1463.00 and finally

settling at 1458.00/1461.00. Like gold, silver also lost ground upon the release of

the FOMC rate decision, finding support near 1445.00.

Daily Gold and Silver Technical Commentary:-

Gold 50-day once again coming to the rescue in support of the metal, though we

did end up trading marginally higher on the day. Even so, the market's indecision

provides us with more warning as another "outside day" has been recorded on the

daily candlesticks. The gold 38.2% Fibonacci generally continues to hold off of the

primary base from the April lows. Additionally, despite the fact that gold has traded

very weightily over the past week, the metal is still holding near the middle of the

one-month bull channel, with the bottom end of the channel coming in near

$930.50 today, providing further support should gold collapse through the 50-day.

Silver price action today was fairly bullish, as the metal traded and closed

through yesterday's high after touching a new six session low. The overall uptrend

remains in tact and our outlook continues to be cautiously bullish. Support comes

in at today's low of Silver 14.24 followed by the 21-day moving average of 13.95; while

resistance comes in at the August 6th high of 15.05.

Daily gold and silver price(rates)

Wednesday As On 13-08-2009

Daily Gold Price(rate) Close Today : 950.70

Change: 4.90 or 0.5%

Daily Silver price(rate) Close Today : 14.578
Change: 24 cents or 1.7%

platinum price(rate) Close Today: 1242.90
Change: 3.00 or 0.2%

Plladium price(rate) Close Today: 273.40
Change: -3.00 or -1.1%

Daily Gold and Silver Ratio Today: 65.21
Change: -0.750 or -1.1%

Dow Industrial: 9,361.61
Change: 120.16 or 1.3%

US Dollar Index: 78.85
Change: -0.30 or -0.4%


The Daily GOLD PRICE(rate) rose a lazy $4.90 to close on Comex at $950.70, up, but not above $954-$955 resistance.

The Daily SILVER PRICE(rate) rose 24 cents to $14.578 cents. Okay, okay, so far, so good, but these closes are mid-range values, not break-outs up or down, so we are still watching.

I'm still looking at two outcomes. Less likely is a surprise US Dollar rally that slows gold's final thrust through $1,000 by 3 to 6 months. More likely is sideways to higher Daily silver and gold prices(rate) through August, with a rise to pierce $1,000 in the fall. SOMETHING needs to break out of its range to make clear which to expect.

However, long term nothing has changed. As the FOMC statement today re-iterates, the Fed has inflated, is inflating, and will inflate. Therefore the dollar will continue to decline over the long term, and silver and Daily gold prices(rate) will continue to rise, since they are the only stable alternative currencies.

The US DOLLAR INDEX dropped 29.7 basis points, which to me wasn't large enough to say much. What's that phrase all the gurus use? "A muted response." Yeah, that's it. News that dollar interest Daily rates are likely to stay low until palm trees grow in Greenland isn't really good news for the buck, since relative interest rates are one of the primary determinants of short term exchange rates. And of course, the rest of the FOMC's statement was merely, "Inflation, inflation, and more inflation." Yet the buck only fell 29.7 bps, and not to next support which would have been 78.33. Let's see now what a couple of days' trading does. Events have not yet foreclosed a dollar rally.

Daily gold and Silver Price:-

STOCKS are feeding still off a dwindling dollar, and greeted today's FOMC announcement with a cheery 120.16 upmove to Dow 9,361.61. S&P 500 jumped over the 1,000 hurdle to close at 1,005.81, up 11.46. Rally continues, and will move higher. Use this last chance to get out of stocks.