Gold Reaches A Five-Month High

GOLD

Gold reached a five-month high this morning of $1,876, but couldn't breakthrough that resistance level. At that level we saw profit taking and short-selling, which drove the price down to test support at the very important $1,850 area. Gold’s recent rally has happened in spite of the U.S. Dollar index reaching a one-year high of 95.84. At 11am PT today, Gold is trading at $1,854 per ounce, down $15 on normal volume.

SILVER

Silver reached a low of $24.76, as the Gold price declined sharply from its high. $25 is a very important level for Silver to move back above quickly. At 11am PT today, Silver is down $0.33 per ounce, trading at $25.21 on average volume.