Gold remains unchanged amid interest rate increase

GOLD

U.S. interest rates increased to a six month high today (10-year at 2.45%) and Gold remains unchanged. I believe the reason Gold has support is because a major buyer is in the market right now, which is likely to be a central bank. Gold is trading in a narrow $9 high/low range today, between $1,280 and $1,271 per ounce. During most of today’s trading Gold stayed very close to $1,276 per ounce. At 11am PDT today, Gold is unchanged, trading at $1,277 per ounce on average volume.

SILVER

Silver traded above $17 per ounce, reaching a high of $17.06 for a short period of time. Some day traders shorted Silver when it was above $17, driving the price down to the mid-$16.90 level. Silver found support at $16.90 as traders covered short sales and bargain buyers appeared. At 11am PDT today, Silver is down $0.02, trading at $16.94 on normal volume.