Gold broke above $1,300 for the first time this year

GOLD

Gold opened higher this morning and briefly broke above the $1,300 resistance level in early trading for the first time this year. As expected, we saw some profit-taking today. Despite that, the U.S. Dollar index has not yet changed much for the day, showing that there is strong support for Gold to test the $1,300 level again. Originally we thought Gold would test the $1,300 level soon, but the fact that it happened so quickly is very bullish for Gold.

The Dollar grew weaker as trading continued today and the market adjusted to the news of Steve Bannon’s departure as President Trump’s senior advisor and the added role Gary Cohn will have in the administration. Investors are becoming increasingly cautious of Presidents Trump’s ability to implement his economic agenda, the major stock indexes are at their lowest level since the election last November, and the U.S. Dollar continues to weaken. With the addition of an unpredictable geopolitical landscape, the investment community is calling this convergence of events ’the perfect storm’ for Gold. At 11am PDT today, Gold is up $5, trading at $1,290 on heavy volume.

SILVER

Silver closed above $17 yesterday and is on the move, trading above $17 for most of the day today. We want to see Silver close above $17 for several more days as it consolidates and prepares for the next move higher to $17.50. At 11am PDT today, Silver is trading at $17.12, up $0.04 on above average Friday volume.