Gold and Silver Looking Strong as Gross Domestic Product (GDP) Fell 0.9%

GOLD

Gold broke back above the key $1,750 per ounce resistance level this morning on news that our Gross Domestic Product (GDP) fell 0.9% in the last quarter. This is the second quarter of negative growth and showing our economy is in a recession. Combine this news with yesterday’s less hawkish Federal Reserve statements, driving down interest rates, helped Gold expose higher this morning. Gold reached a high of $1,758 before seeing some light selling. At 11am PT Today, Gold is trading at $1,751 per ounce, up $27 on excellent volume.

SILVER

The Silver price really liked the GDP news and the likelihood of a inflationary recession coming to the U.S. Silver rallied over $1.00, reaching a high of $20.07 before seeing like short-term profit taking. The Silver price was oversold and has reacted by seeing a lot of short-covering this morning. At 11am PT today, Silver is up $1.15 per ounce, trading at $19.90 on excellent volume.