Gold And Silver Continue Their Move To Make New Highs

GOLD

Yesterday and in overnight today, Gold has stayed in a narrow trading range between $2,017 and $2,033 per ounce. I really like the way Gold is trading around the globe, with very bullish consolidation with excellent volume at key support levels. The longer Gold trades above the $2,000 level the better it looks for the breakout above $2,050 to come soon. Today, Gold is trading at $2,035 per ounce, up $11 on excellent volume.

For years I have shared my concerns about the possibility of China replacing the U.S. Dollar as the world’s reference currency with the Yuan, seriously devaluing the U.S. Dollar. There is a belief that with a digital Yuan, backed with Gold, China could make it happen within the next few years. But after listening to Treasury Secretary Yellen yesterday, saying that this could happen if the U.S. destroys its international credit rating by not raising the debt ceiling. I never thought of the possibility that we could do this ourselves, but it’s possible. I suggest we carefully watch the debt ceiling debate between the President and Republican leadership. In next week’s Weekly Market Report, I’ll share what will happen to the value of our currency if the Chinese are able to replace the U.S. Dollar with the Chinese Yuan as the world’s reference currency.

SILVER

Silver has traded today between $25.30 and $25.73 with excellent trading volume and strong demand. Physical demand remains strong for most of the popular Silver investment coins and current premiums reflect that demand. At 11am PT today, Silver is up $0.06 per ounce, trading at $25.66 on excellent volume.