Gold And Silver Test Key Support Levels

GOLD

A strong U.S. Dollar is putting pressure on the Gold price, but Gold is showing a lot of demand at the key $2,000 per ounce resistance level. Analysts are looking at the effect the U.S. debt ceiling issue could have on the economy and the Gold price. In 2011, the last time congress delayed the passage of a debt ceiling increase, Gold rallied $300 in one month. At 11am PT today, Gold is trading at $2,014 per ounce, up $2 on average volume.

SILVER

Yesterday, the Silver price fell sharply, down $1.20 per ounce, on concerns over a weak economic recovery in China as well as a strong U.S. dollar rebound. China's consumer inflation fell to its lowest level in more than two years, intensifying concerns about Silver demand from the world's second largest economy. Today, Silver is testing the key $24 per ounce support level, briefly reaching a low of $23.72 before rallying back. At 11am PT today, Silver is down $0.30 per ounce, trading at $24 on average volume.