GOLD

This morning Gold hit a low of $1,204 in Asian markets on heavy volume. It appears that was the Gold price bottoming out. Trading activity is showing an inter-day reversal, which would be a bullish signal. I look for Gold to show a little consolidation in the $1,210 to $1,220 level in the next few trading days, and then start moving higher. At 11am PDT today, Gold is trading at $1,214 per ounce, up $2 on heavy volume.

SILVER

Silver hit a 16-month low this morning of $15.14 per ounce before turning up on heavy volume and quickly rallying $0.40 on sizeable buying. Silver also appears to have had a very bullish inter-day price reversal and is finding heavy buying support above $15.50 per ounce. At 11am PDT today, Silver is up $0.18 per ounce, trading at $15.70 on excellent volume.