Gold On Track To $1600 Per Ounce

GOLD

After yesterday’s extraordinary volatility in the precious metal markets, we are seeing calm and orderly markets today as the prices move higher. Gold tested the $1,500 per ounce support level in early trading and immediately found excellent support and rallied back above $1,510. As trading moved into the U.S., the bond market declined and equity markets sold off (DOW down over 600 pts) and Gold/Silver rallied. The 10-year treasuries hit a low of 1.56% today, giving Gold incentive to rally. $1,600 per ounce here we come. At 11am PT today, Gold increased $18 per ounce, trading at $1,520 on excellent volume.

SILVER

Silver briefly traded below $17, reaching a low of $16.85 in Asian trading. Silver rallied back with Gold moving above the $17 support/resistance level. Silver is on track to move above $17.50 per ounce this month, on its way to the $18 level. At 11am PT today, Silver was trading at $17.30 per ounce, up $0.32 on excellent volume.