Gold and Silver Continue to Rally as U.S. Dollar Index Moves Lower

GOLD

Gold continued its recent rally today, moving to a high of $1,731 per ounce, before seeing light selling. Gold’s rally is in the face of the U.S. Dollar Index continuing to move lower, reaching 110 today, a 4% decline in less than a week. Other than a OPEC meeting coming later this week, (driving up crude oil prices) I see no other reason for this rally. At 11am PT today, Gold is trading at $1,722 per ounce, up $27 on excellent volume.

SILVER

Silver is definitely the leader of the recent precious metal index rally. Silver is up over $3 from last weeks’ low of $17.80 per ounce. In early trading Silver brought above the $21 per ounce resistance level and reached a high of $21.33 before seeing light selling. The Silver-to-Gold ratio has dropped from 87-to-1 to 81-to-1 in just four trading days. At 11am PT today, Silver is up $0.45 per ounce, trading at $21.05 on excellent volume.