Weak Dollar sets stage for higher Gold price

GOLD

As the U.S. Dollar hits a 3-year low, and Treasury Secretary Mnuchin stated “a weaker dollar is in the best interests of our economy” the stage was set for a higher Gold price. Gold quickly rallied, reaching a high of $1,358.30 per ounce on heavy trading volume. This price is the highest for 2017/18 and a breakout number. If Gold can hold above $1,357 by week end, we will be on our way to $1,400 per ounce. At 11am PST today, Gold is up $19 per ounce, trading at $1,357 on heavy trading volume.

SILVER

Wow, with Gold up about $20 (1.5%), Silver followed Gold higher and was up $0.52 (3%). Silver did reach a low of $16.94 in early Asian trading before Mnuchin’s statement. Today’s rally shows the explosive volatility that is possible for the Silver price, especially as Gold moves towards $1,400 per ounce. At 11am PST today, Silver is up $0.52 per ounce, trading at $17.50 on heavy volume.