Gold & Silver Daily Market Recap: January 15th, 2013

Cache Metals Gold & Silver Precious Metals Daily Market Report

Spot gold continued its advance which started on Monday, the yellow metal broke to a 2 week high of $1685 and the heels of mixed U.S data and technical buying.

Yesterday afternoon saw US Federal Reserve Chairman down play the rampant speculation of an early end to the bond buying program. Ben Bernanke mitigated the concerns that aggressive bond‐buying program will lead to higher inflation. Bernanke also gave a warning that a premature interest hike at this point would do more harm than good since the U.S economy is just begging to show signs of recovery.

Ratings agency Fitch gave lawmakers a stern warning regarding the wrangling on the debt ceiling....“If we have a repeat of the August 2011 debt ceiling crisis we will place the U.S. rating under review. There will be a material risk of the U.S rating coming down"

US President Barack Obama has urged Congress to increase the debt ceiling and avoid the situation that was faced in 2011. President Obama reiterated that a failure to act could bring "turbulence" to the financial markets. Investors have been heeded the words uttered by President Obama by showing they are unwilling to hold equities. The major stepping stone on the debt ceiling issue is Republicans are demanding that spending cuts be made before they approve the ability of the US Treasury to pay the country’s bills.

Spot silver has trended very nicely since hitting a low last week of $29.24. Dual role metal has strengthen both on the precious metal side and industrial metals side as demands picks up as stimulus in Japan will help support the markets and recovering economies in the US and China help the outlook for future needs. The metal has had a technical break out and further gains are in the cards.

Spot gold has had a technical break out above $1675, if the metal can hold and close above this level expect more gains in the cards as the bulls have averted a crisis. The metal major resistance for the yellow metal is $1695which is the price we hit in at the beginning of the year. With that being said, if there is a swift deal regarding the debt ceiling expect the metals to trade lower on the heels of the news.