China & India Driving Up Demand For Gold

GOLD

In spite of a higher Treasury 10-Year rate and a strong U.S. Dollar Index, the demand for Gold continues to drive up the price. After reaching a high of $1,752 earlier this week, causing short-term profit taking, I believe Gold will move back above $1,750 next week. We are seeing Gold demand from China and India continuing to increase, which will add support to the price increase. At 11am PT today, Gold is trading at $1,743 per ounce, up $9 on excellent volume.

SILVER

Silver continues to take price direction from Gold, but normally with a higher percentage increase. Right now, it appears that $26 is showing as an excellent support level, while $27 is the resistance level. When Gold breaks above $1,750 next week, I think we should see Silver make a strong move towards $27. At 11am PT today, Silver is down $0.02 per ounce, trading at $26.30 on good volume.