Gold Breaks $4,000 & Silver Below $50

GOLD

A truly ugly day for precious metal owners, with Gold reaching a low of $3,880 per ounce. Why? A combination of higher oil prices, worsening inflation data, and concerns about higher interest rates coming in December. Commodity traders are also fearing a major Iranian attack after Tuesday’s elections. The weakness in the Gold market isn’t coming from overseas trading; it's happening in the U.S.

At 11am PT today, Gold is down $125 per ounce, at $3,890 on high volume.

SILVER

Silver traded well above $50 per ounce this morning in overseas trading. However, when trading moved to the U.S., and Gold broke below $4,000, Silver followed and dropped to a low of $48.89 before finding bargain buying. At this price level, we should see heavy demand in China on Monday for Gold and Silver.

At 11am PT today, Silver is trading at $49.14 per ounce, down $3.06 on high volume.