Gold Sees Its Correction

GOLD

In the past two months Gold has moved from $1,683 per ounce to $2,070 without any serious correction. Well, last night we saw that correction. Gold broke through the $2,000 barrier and kept on going until it hit $1,925 per ounce. After this clean out, I believe Gold will trade between $1,900 and $2,000 for a short period of time to re-establish a strong base for the next move over $2,000. Remember $2,200 by year end is the target, and corrections are expected as it represent a buying opportunity. At 11am PT today, Gold is trading at $1,932 per ounce, down $100 on heavy volume.

SILVER

Silver followed Gold lower, reaching a low of $25.25 on heavy trading volume. Many professional traders shorted Silver when it broke below the $27 resistance level. Silver has moved from $17.50 to almost $30 in the past two months, a correction is necessary for the rally to continue. I believe Silver will find support above $25 per ounce. At 11am PT today, Silver is down $3.50 per ounce, trading at $25.35 on heavy volume.