Senate passes $4 trillion budget bill

GOLD

Last night the U.S. Senate passed a $4 trillion Budget Bill, which clears the way for a Tax Reform effort in December. The vote sets the stage for debate later this year about dramatically overhauling the U.S. tax code, cutting rates for individuals and corporations while creating trillions of dollars’ worth of deductions and special-interest tax breaks.

This morning investors betting on faster economic growth as a result bought equities as the U.S. Dollar rallied, while bonds and Gold sold off. Gold reached a high of $1,295 before the Senate passed the budget bill and then corrected down to $1,278 per ounce. At 11am PDT today, Gold is trading at $1,280, down $8 per ounce on average volume.

SILVER

After reaching a high of $17.32 per ounce in late trading yesterday, this morning Silver is on the defensive. Silver is fighting to stay above the key $17 per ounce support level. At 11am PDT today, Silver is down $0.19 per ounce, trading at $17.02 on normal volume.