Both Gold & Silver Made New Highs Then See Sizeable Profit-Taking

GOLD

Gold and Silver fell sharply today on reports that U.S. President Donald Trump will appoint Kevin Warsh as the next Federal Reserve Chairman, triggering a sharp correction after precious metals rallied to record highs on Thursday. Mr. Warsh has spoken numerous times about how interest rates should not be lowered. Financial analysts had felt that President Trump would select a new Fed Chair that was in favor of lowering interest rates. This surprise announcement drove the Gold price down to a low of $4,691 before rallying back above the key $5,000 level.

The past two days have been extraordinary, with Gold reaching a high of $5,596 yesterday morning and hitting a low today of $4,691. Remember, Gold was $4,325 30 days ago and had a meteoric increase, so a sell-off isn’t overly surprising. I expect the markets to settle down on Monday as Central buying steps in, and hopefully, Gold can build a firm base between $4.800 and $5,000 per ounce to stay bullish.

At 11am PT today, Gold is trading at $4,880, down an unbelievable $459 per ounce.

SILVER

Yesterday, Silver reached a high of $121.70, and today saw a low of $73.67 per ounce. WOW! I have been talking about seeing a correction, but not that much this quickly. Clients who followed my recommendation to take profits in Silver and switch the money into Gold are doing well. Although Gold is down 11% today, Silver is down 32%, and based on Gold/Silver prices right now, the trade worked.

Although the price of Silver was $70.13 30 days ago at the beginning of the year, Silver needs to firm up and move back over $90 to keep it on a bullish track.

At 11am PT today, Silver is trading at $83.30, down $31.14 per ounce