Gold Rally Saves Silver

GOLD

Finally, Gold reached a high of $1,299.80 this morning, a $18 break out. Why? A weaker U.S. Dollars and massive inflows of Gold reported going into major ETF funds over the past few weeks. A test of the important $1,300 resistance level should come early next week. However, if it doesn’t the Chinese Lunar New Year will do the trick a week later. The Chinese are sizeable buyers of Gold during the New Year holiday. At 11am PT today, Gold is trading at $1,297 per ounce, up $16 on excellent volume.

SILVER

The Gold rally saved Silver this morning. Major commodity traders started looking at the lower Silver price of $15.23 and put fresh positions, which drove up the price. Silver hit a high of $15.72 before short term profit taking hit. At 11am PT today, Silver is up $0.32 per ounce, trading at $15.61 on good volume.