Bank of Japan's Monetary Policy Cause Gold and Silver to Rally

GOLD

As we look back on yesterday’s $26 rally in Gold, it’s clear now that the catalyst was the Bank of Japan move to tighten its monetary policy. This moved caused the Yen to rally to the highest rate this year versus the U.S. Dollar. As we know, a weak U.S. Dollar means higher precious metal prices. Today, Gold is holding that increase, trading from a low of $1,815 to a high of $1,825, as it builds a strong base above $1,800 per ounce. At 11am PT today, Gold is trading at $1,817 per ounce, up $2 on excellent volume.

SILVER

Silver followed Gold higher yesterday, surging above the $24 resistance level and reaching a high of $24.27. Today, Silver has traded between $23.80 and a high of $24.28 as it finds excellent support above the key $24 level. At 11am PT today, Silver is up $0.05 per ounce, trading at $24.05 on strong volume.