Gold moved quickly above the $1,300 support/resistance level

GOLD

In late morning trading the Gold price started a rally, quickly moving back above the $1,300 support/resistance level, reaching $1,306 per ounce. The news that directly affected this rally was another statement from North Korea…

"North Korea’s Foreign Minister Ri Yong Ho on Monday accused US President Donald Trump of declaring war on his country by tweeting over the weekend that North Korea ’won’t be around much longer.’ In light of this, Ri said North Korea would take counter measures, including the right to shoot down US bombers flying over the Korean Peninsula, even if they did not enter North Korean airspace" Source: CNN.com 9/25/17.

At 11am PDT today, Gold is trading at $1,307 per ounce, up $9 on very active volume.

SILVER

Silver followed Gold higher this morning, rallying from $16.62 to $17.15 on the Korean statement. I expect to see a little selling after this sharp rally, but believe it should stay above the important $17 level. At 11am PDT today, Silver is up $0.13 per ounce, trading at $17.10 on very active volume.