Gold sold off on raised tariffs
Exciting day… Our President raised aluminum/steel tariffs on Turkey, which caused a Turkish currency crisis. The U.S. Dollar index soared above 96 this morning (14-month high) then Gold, currency, and equity markets sold off, which caused Gold to reach a low of $1,205 per ounce. Then, trading volume increased dramatically and Gold quickly moved up to $1,217 before sellers appeared. Today’s news and trading should have driven Gold to break the important $1,200 support level, but major buyers (Central Banks?) stepped in a cleaned up the available Gold at the $1,205 to $1,208 level. Barring another currency crisis next week, I now look for Gold to start moving higher, above the $1,250 level in the short term. At 11am PDT today, Gold is down $2 per ounce, trading at $1,212 on excellent volume.
Silver reached a low of $15.24 per ounce, and bounced back when Gold rallied. Silver needs to move back above the key $15.50 level and close there for a couple days for professional traders to get short-term bullish. At 11am PDT today Silver is trading at $15.32 per ounce, down $0.13 per ounce on excellent volume.