Dow Jones Average Reaches All-Time High

GOLD

Today, the Dow Jones Average surpassed 30,000, an all-time high, as optimism of an economic recovery within the next six to twelve months. That speculation is in spite of the expected higher corporate taxes and a rise in capital gain to pay for the coming stimulus legislation. Gold is taking a back seat to this move in equities by testing its 200-day moving average of $1,800 per ounce.
This selloff, testing the $1,800 support level, as I mentioned in yesterday’s Weekly Market Report, could be the final clean out before the year-end rally. At 11 am PT today, Gold is trading at $1,807 per ounce, down $33 on excellent volume.

SILVER

Like Gold, Silver tested its $23 support level this morning and held, reaching a low of $22.93 per ounce before rallying back. At this surprising low level, I feel Silver is an outstanding investment with great potential for a sizeable increase. Demand for popular physical Silver investment items is strong. At 11 am PT, Silver is down $0.30 per ounce, trading at $23.30 on heavy volume.