Gold In the Face of a Recession and Inflation

GOLD

After reaching a low of $1,822 in early morning Asian trading, Gold bounced back to a high of $1,848 in European trading. Recession concerns are outweighing fear of increasing inflation. Fed Chairman Powell testified to Congress this morning, stating “At the Fed, we understand the hardship high inflation is causing. We are strongly committed to bring inflation back down”. Gold rallied in the face of Powell stating he didn’t rule out a 1% increase in the Fed Fund rate for July. At 11am PT today, Gold is trading at $1,840 per ounce, up $5 on normal volume.

SILVER

During European trading, silver sold off to $21.36, below the key $21.50 support level. As trading rounded into the U.S. buyers appeared and Silver rallied back to the $21.50 per ounce. Demand for many of the popular investment quality Silver coins and bars remains strong in the face of higher premiums over spot. At 11am PT today, Silver is down $0.23 per ounce, trading at $21.50 on average volume.