Gold And Silver Prices Higher After Negative News

GOLD

Resilience is the word for Gold this week. We started the week at $2,311 per ounce and were hit with two major negative announcements. First, it was China saying they have halted all gold purchases from May onward, after being a major buyer for the past 15 months. Second, Federal Reserve Chairman stated on Wednesday that there may be only one drop in the Fed Funds rate this year, compared to the three drops forecasted earlier. Both of these facts could have easily dropped the price of Gold to $2,200 per ounce, but the lowest Gold reached was $2,294. Today, the buyers are back and the professional traders are moving back into the Gold market.

At 11am PT today, Gold is trading at $2,332 per ounce, up $30 on excellent weekend demand.

SILVER

The Silver price was hit harder than Gold on the two announcements. Silver broke below both the $30 and $29 support levels, reaching a low of $28.61 before seeing bargain buying. Silver has rallied back to the mid $29 level but needs to cross back above the $30 level to remind bullish.

At 11am PT today, Silver is up $0.51 per ounce, at $29.46 on normal volume.