Financial markets focused on tax reform

GOLD

The focus of most of the financial markets today is the tax reform plan coming out of congress later this afternoon. Republican leadership is making major concessions to members to secure their vote, and the legislation is likely to drive the federal deficit much higher than originally thought. It appears that we should have a final version of the legislation by day-end, so legislators can go home early next week for the holidays. Gold is holding over $1,250 per ounce, a key support level, which is a good sign of a stronger price coming. At 11am PST today, Gold is trading at $1,255, down $1 per ounce on excellent volume.

SILVER

Silver has reached a low of $15.84 and a high of $16.12 today, as the bulls and bears fight to gain control of the market’s direction. I have said numerous times that the $16 per ounce support/resistance level is very important to the long-term direction of the market. At 11am PST today, Silver is up $0.08 per ounce, trading at $16.03 on good volume.