Fresh Buying Helps Silver Lead the Market

GOLD

After reaching a low of $1,660 in Asian trading, Gold followed a big increase in Silver and rallied $30 per ounce. A combination of a lower U.S. Dollar and a drop in interest rates helped Gold quickly move higher. One of the indicators the Federal Reserve watch is the U.S. Manufacturing (PMI) and its  1.9 points fall in September to 50.9. This could result in the Federal Reserve re-thinking another Fed Funds increase this year. Today, Gold reached a high of $1,699 before seeing light short-term selling. At 11am PT today, Gold is trading at $1695 per ounce, up $32 on excellent volume.

SILVER

Fresh buying helped the Silver market lead the precious metal prices much higher. Silver reached a low last night of $19.17 per ounce, and rallied sharply higher in European trading. Silver reached a high of $20.76, before seeing some light short-term profit taking. At 11am PT today, Silver is up $1.55 per ounce, trading at $20.60 on excellent volume.