Gold And Silver Hit Bottom And Rally Back On Strong Volume

GOLD

After Gold reached a low of $4,404 per ounce during Indian trading yesterday morning, there were sizeable number of large purchases (Estimated at 20 metric tons) made on the opening of this morning's London trading. Large purchases normally mean the Central Bank buying and indicate the bottom of a sell-off. They believe the $4,404 low was a final clean-out of the short-term bear market. Gold should trade between $4,800 and $5,000 until the next release of bullish news.

After closing in the U.S. yesterday at $4,655, Gold started moving higher. This morning, Gold traded in China at $4,770 and in India at $4,814, then moved in London at over $4,900 per ounce. When trading reached the U.S., Gold was over $4,900 per ounce.

At 11am PT today, Gold is trading at $4891.44.

SILVER

Like Gold, Silver bottomed out yesterday at $71.36 during Indian trading yesterday and closed in the U.S. at $79.37 per ounce. In early overseas trading this morning, Silver started moving higher, reaching $82.78 in China and $83.42 in India, and over $86 in London. After yesterday’s dramatic correction, I look for Silver to build a base and consolidate between the $85-$90 per ounce level.

At 11am PT today, Silver is up $83.14.