Gold And Silver Breaking Below Support Levels

GOLD

Concerns about the debt ceiling problem and a U.S. Dollar Index trading at 2-month high (over 104) continues to put pressure on precious metal prices. Gold reached a low of $1,939 this morning before seeing sizeable bargain buying. At 11am PT today, Gold is trading at $1,945 per ounce, down $18 on normal volume.

SILVER

The Silver price is reacting to the U.S. Dollar increase far worst then Gold. Silver broke below the $23 level this morning, reaching a low of $22.73 before seeing short-covering and fresh buying. At 11am PT today, Silver is down $0.27 per ounce, trading at $22.87 on average volume.