Gold attempted to break out of narrow range

GOLD

Gold reached a high this morning of $1,282, in its first attempted rally to break out of its recent narrow trading range. There are a number of both positive and negative short-term factors that are moving Gold higher a lower.

Negative factors:

• A stronger U.S. Dollar as the Index is staying above 93
• U.S. Interest rates moving higher, now above 2.35% on the 10-Year Treasury Bond
• A rally in the U.S. equity markets with the Dow Jones and Nasdaq trading near the highs

Positive Factors:

• Continued heavy Gold buying from many of the World’s Central Banks at this price area
• Many Gold and Silver mining stocks have been rallying for the third day on high volume
• Gold and Silver are both showing excellent support above the 100-Day moving average

At 11am PDT today, Gold is up $2 per ounce, trading at $1,275 on normal volume

SILVER

Today Silver reached a high of $16.92 per ounce before heavy selling appeared, which drove the price down to test the $16.50 support level. At 11am PDT today, Silver is trading at $16.65, down $0.02 per ounce on average volume.