Gold Has Now Rallied Over $100 Since Last Week

GOLD

After reaching a low of $1,821 per ounce in overnight Asian and early European trading, Gold found fresh buying and quickly broke above the $1,850 level. After breaking $1,850, traders started covering their short-sales and the rally continued to above $1,865 per ounce. Reports that Congress is getting closer to the passage of a $908 billion COVID stimulus bill has been helpful to the Gold rally. Gold has now rallied over $100 since last week’s low of $1,766 and is back on its bullish track. Historically, December has been a very good month for the Gold price. What would be healthy for Gold right now is to spend this week trading between $1,850 and $1,900, building a firm base for the next leg higher. At 11 am PT today, Gold is trading at $1.861, up $26 per ounce on nice volume.

SILVER

Silver followed Gold lower in early trading, hitting $23.60 per ounce, before rallying. After Gold broke above $1,850, Silver moved above $24.50 per ounce. Last Monday, Silver reached a low of $21.96 and has rallied over $2.60 since that low. Silver, like Gold should spend this week, with a few tests of support, trading between $24.50 and $25, also preparing for the next leg higher. At 11 am PT today, Silver is up $0.40 per ounce, trading at $24.56 on good volume.