During the July 4th holiday, Gold moved higher, reaching $1,230 on the news of the North Korean missile launch. This morning, however, Gold lost that momentum and dropped off to $1,217 per ounce before bargain buyers appeared. We need to see Gold move back above the $1,230 level by Friday, or we could test the $1,200 long term support level. BoA/Merrill Lynch just issued a Gold report, stating they still see Gold hitting $1,400 per ounce by year end. At 11am PDT today Gold is trading at $1,223 per ounce, up $2 per ounce on good volume.


When Gold sold-off, Silver fell at a much faster rate, hitting a low of $15.86 (below the key $16 support level) before seeing bargain buying. Silver needs to move back above the key $16 level by the weekend, or $15.70 is possible. At 11am PDT today, Silver is down $0.20 per ounce, trading at $15.95 on healthy volume.