Gold Breaks $1,800 Resistance Level

GOLD

Yes, gold broke out, moving above $1,800 early this morning in European trading and all the short-sellers ran for cover. The Gold price quickly moved to $1,818 per ounce before seeing some fresh selling and short-term profit taking. I believe this is the first step for Gold to reach the $2,000 level by August. We will see some testing of the $1,800 support level soon, but I believe it will hold. At 11am PT today, Gold is trading at $1,812 per ounce, up $27 (1.5%) on excellent volume.

SILVER

Silver moved with the Gold rally, quickly breaking above the $27 resistance level, and hitting a high of $27.50 per ounce. If this breakout results in increased demand, already high premiums will move higher, as supplies are limited. At 11am PT today, Silver is up $0.84 per ounce, trading at $27.34 on strong volume.