Gold on defensive

GOLD

Gold remains on the defensive as the U.S. Dollar index hit a 3 1/2 month high today, and the 10-year U.S. Treasury rate moved above 3%, the highest rate in 4 years. Gold was lower in early-afternoon trading, breaking below $1,320 and reaching a low of $1,319 per ounce before seeing bargain buying. The U.S. stock indexes were weaker today on disappointing corporate earnings and interest rate concerns. If the U.S. market sells off sharply in the near-term and investors turn to safe-havens, we could see a surge in Gold demand. At 11am PDT today, Gold is down $10, trading at $1,322 per ounce on good volume.

SILVER

Silver continues to find support above $16.50 per ounce this morning. Silver has traded in a $0.32 range today, hitting a high of $16.79 before seeing some sell-off. At 11am PDT today, Silver is down $0.19, trading at $16.60 per ounce on slightly above average volume.