Gold reacting to Dow Jones

GOLD

Yesterday Gold closed up $4 in the face of a 669 point increase in the Dow Jones average. Today, the Gold price reacted to yesterday’s moves and fell $10 an ounce on light selling and short-term profit taking. Gold showed excellent demand at the $1,340 support level. At 11am PDT today, Gold is trading at $1,345 per ounce, down $9 on normal volume.

SILVER

Silver reacted with the correction in Gold, and briefly fell below the important $16.50 level. Silver is mirroring Gold’s movements recently, even with a higher than 80-to-1 Gold/Silver ratio. At 11am PDT today, Silver is down $0.15 per ounce, trading at $16.55 on good volume.