China's Economic Retail Report and the Effect on Gold

GOLD

A strong U.S. Dollar combined with a weak economic retail report from China this morning has put pressure on the Gold price this morning. The U.S. Dollar Index moved back above 106 and China reported July Retail grew only 2.7%, down from the 5% that was expected. Gold tested the $1775 support level this morning and found excellent demand At 11am PT today, Gold is trading at $1,782 per ounce, down $16 on average volume.

SILVER

After reaching a low of $20.36 per ounce in early morning trading, silver moved higher, led by the strength in Gold. Silver reached a high of $20.92 before seeing light weekend selling. I believe we will see a $21 break next week if the Gold price stays strong. At 11am PT today, Silver is up $0.30 per ounce, trading at $20.70 on normal volume.