Daily Update Market Commentary Gold opened higher at 1358.50/1359.50 with a quick dip after the open to its low of 1355.25/1356.25. Good buying interest throughout the morning pushed the metal through resting stops between 1364.00 and 1368.00, taking us to a new all time high of 1374.50/1375.50 as investors looked to currency alternatives. Profit taking took gold to its close at 1369.00/1370.00. Silver opened strongly at 23.52/23.55.
Following declining base metals as the dollar strived to recover from overnight lows, silver traded to its low of 23.42/23.45 shortly after the open. Unfortunately for the dollar, its recovery did not hold and base metals along with crude recovered strongly with silver following to its high of 23.95/23.98 shortly before its close at 23.91/23.94. Technical Commentary Gold today reached and exceeded our long term target of 1369. This is the case where our two year Elliot Wave off 683 had its Wave 5 equal to Wave 1 in distance. The bullish close at current 1370 shows no sign of reversing. Our two month measured channel comes in at 1375 offers resistance with support now at 1355. Looking at further possible measured upside moves produces 1448. This target is the case similar to the Aug-Dec 2009 strong $291 up move from 930 to 1221. The 2010 version of that move started in June at 1157 plus $291 would yield 1448. Silver continues to power higher to current 23.87. You have to look back to Dec 2007- March 2008 where the metal went up a strong $7.60. If we see a similar aggressive advance it would yield 25.37 based off our 17.77 starting rate. The Gold Silver ratio has hit a fresh low at current 57.36. This area was the high November 2007 but once the area is cleaned out we suggest the next stop is 54.35.
