Gold reacting to NAFTA news

GOLD

This morning, Gold tested the $1,200 per ounce support level, reaching a low of $1,203. Then, news came from the White House of a possible new trade agreement with Mexico under NAFTA’s 25-year old original agreement, and the equity markets rallied sharply. This news affected the U.S. Dollar negatively and Gold jumped $6 per ounce. At 11am PDT today, Gold is trading at $1,209 per ounce, up $3 on good volume.

SILVER

Silver showed support around $14.70 in early trading and rallied to $14.96 on the NAFTA news but quickly sold off with short-selling at the important $15 per ounce resistance level. At 11am PDT today, Silver is up $0.06 per ounce, trading at $14.86 on normal volume.