Crude Oil Up 26% In Six Days

GOLD

Gold continues to trade in the $1,920 to $1,940 level today, as it consolidates recent gains. A great inflation indicator is the price of crude oil, which has moved from $92 a barrel last Friday to $116 today, a 26% increase in six days. During the same period Gold has increased only 2%, and clients ask why I’m so bullish on Gold and looking for $2,000 per ounce later this month. At 11am PT today, Gold is up $13 per ounce, trading at $1,937 on solid volume.

SILVER

Silver traded today above and below the key $25 per ounce level. Silver’s $25 per ounce level is important to the short and long range price direction. Silver needs to establish a firm base above $25 to give commodity traders the confidence required to be long and not to short-sell Silver at that price level. At 11am PT today, Silver is trading at $25.25 per ounce, down $0.01 on normal volume.