A Clear Road To $2,000

GOLD

This bull/bear Gold war continued last night in Asian and European Gold markets. The bears were able to pull the Gold price down to $1,902 per ounce, but they couldn’t break below the very important $1,900 resistance level. At that price, exactly what I was hoping would happen, did. A major buyer came in and the bears ran for cover, while the price started moving higher. That rally continued into U.S. markets, reaching a high of $1,950 per ounce. After we break above the $1,950 resistance level, it’s a clear road to $2,000 again.

I would like to believe that this morning was the last test of $1,900 support level, but what the Fed Chairman says about inflation tomorrow could be a major short-term stimulus for a Gold rally above $2,000 or a breakdown to $1,900 again. At 11am PT today, Gold is trading at$1,947, up $27 per ounce on excellent volume.

SILVER

When Gold hit $1,902, the Silver price reached a low of $26.07 per ounce. They both moved higher together with Gold in the lead. Silver’s key support level recently has been $26 and a rally of support is very good for its move back to $30.00. At 11am PT today, Silver is up $1.02 per ounce, trading at $27.32 on excellent volume.