Gold Reaches High While Dollar Value Drops

GOLD

The value of the U.S. Dollar dropping combined with lower interest rates equal a $23 increase in the price of Gold. Gold reached a high of $1,850 this morning on fresh inflationary buying. It appears that last week's low of $1,777 was the bottom of this correction and if Gold can move back above $1,850 per ounce, we are back on track for over a $2,000 close within months. At 11am PT today, Gold is trading at $1,841 per ounce, up $23 on excellent volume.

SILVER

Silver followed Gold higher today, reaching a high of $22.07 before seeing some short-term profit taking. Short term charts show $22 as being a resistance level, but a move above the resistance level may change many commodity traders’ sentiment from selling on rallies to buying on dips. At 11am PT today, Silver is up $0.45 per ounce, trading at $21.92 on solid volume.