Gold once again tested the $1,320 support level

GOLD

This morning, Gold once again tested the $1,320 support level, by reaching a low of $1,316. Strong buying appeared at that level and the price quickly ran up to $1,324. Today’s trading leads me to think that the recent $30 sell-off correction is over and we should test the $1,350 resistance level by next week. At 11am PDT today, Gold is trading at $1,329 per ounce, up $4 on excellent volume.

SILVER

When Gold tested the low this morning, Silver reached its low of $17.60 per ounce. Gold’s basic bullish fundamentals/ technicals are currently stronger than Silvers, but Silver continues to mirror Gold’s trading activity. Plus, the Silver/Gold ratio has been stuck in the 74/76 to 1 range for the past month. At 11am PDT today, Silver is up $0.02 per ounce, trading at $17.79 on good volume.