Dollar has been dictating Gold price

GOLD

Recently the value of the U.S. Dollar has pretty much dictated the direction of Gold prices. Earlier this month the U.S. Dollar Index almost reached 97, causing the Gold price to hit its recent low of $1,160 per ounce. Today, the U.S. Dollar Index dropped to under 95 and Gold rallied quickly to above the important $1,200 resistance level, hitting a high of $1,208 per ounce. At 11am PDT today, Gold is trading at $1,206 per ounce, up $18 on excellent volume.

SILVER

Today, Silver only reached a high of $14.93 when Gold jumped to $1,208 per ounce - very disappointing. When Gold dropped to $1,160 earlier last week, Silver declined to $14.30, which was a larger percentage drop. Therefore, I would expect to see Silver increase at a larger percentage when Gold broke out above $1,200, but it didn’t. At 11am PDT today, Silver is up $0.20 per ounce, trading at $14.80 on good volume.