Gold Nearing The Key $2,600 Per Ounce Level

GOLD

Yesterday, within an hour after the Federal Reserve announcement that they were cutting the interest rate on Fed Funds by a ½ point, the precious metal markets got highly volatile. Gold reached a high of $2,600 and immediately fell back to $2,545. I was listening to Chairman Powells press conference and didn’t hear anything that could have caused this sell-off. So, it was simply traders buying on the rumors and selling on the news.

Today, Gold showed excellent buying in Asian, Middle Eastern, and European markets, hitting a high of $2,596 before see some light selling in U.S. markets. At 11am PT today, Gold is trading at $2,590 per ounce, up $4 on the day with average trading volume.

SILVER

Silver hit a low of $29.87 yesterday, but quickly turned higher today in early morning overseas trading. Silver has definitely found excellent support over the key $30 per ounce level and is now trading above $31 per ounce.

At 11am PT today, Silver is up $0.20 per ounce, trading at $31.10 on good volume.