Gold Breaks Below The Key $2,000 Level

GOLD

Gold broke down below the key $2,000 support level this morning, reaching a low of $1,985 before seeing sizeable demand. Many market analysts are looking for price direction based on news from the U.S. debt ceiling negotiations. Weaker economic data coming out of China and the U.S. Dollar moving higher has also put pressure on precious metal prices. This could be the last test of the key $2,000 level before the long-awaited rally starts. At 11am PT today, Gold is down $29 per ounce, trading at $1,988 on excellent volume.

SILVER

As the Gold price dropped below $2,000 per ounce, Silver couldn’t hold the key $24 per ounce support level. Silver reached a low of $23.62 before seeing bargain buying and short covering. At 11am PT today, Silver is trading at $23.75, down $0.34 per ounce on heavy volume.