Gold Breaks Below $2900 And Quickly Bounces Back

GOLD

After yesterday’s surprise Consumer Confidence index drop, Gold reached a low of $2,884 per ounce in early selling. As the trading day moved on yesterday, Gold quickly rallied to $2,930 on extraordinary volume before seeing some selling. For the most part of today’s Gold trading, Gold has stayed between $2,910 and $2,920 per ounce as it builds a base above $2,900. It is clear based on yesterday and last week’s trading, Gold wants to move higher and the demand is definitely there.

At 11am PT today, Gold is trading at $2,915, up $5 on excellent volume.

SILVER

Silver got hit real hard yesterday on the Consumer Confidence number, dropping through the $32 resistance level and reaching $31.25 before finding bargain buying in London. Today, Silver has traded between $31.40 and $32.04, building support for a firm move back above $32 per ounce.

At 11am PT today, Silver is trading at $31.80. up $0.20 per ounce.