Gold Sells Off As 10-Year Treasury Rate Hits 3 1/2 Year High

GOLD

Unlike last week, when Gold was moving higher in spite of higher interest rates, this week Gold is behaving normally. Today, as the 10-Year Treasuries interest rate hit 2.98% (A 3 ½ year high) this morning, Gold sold off, reaching a low of $1,938, then rates started dropping and Gold headed higher. In late European and early U.S. trading, Gold moved back above the key $1,950 level on excellent trading volume. At 11am PT today, Gold is trading at $1,954 per ounce, down $2 on good volume.

SILVER

Silver reached a low of $24.84 in early trading and moved back above the key $25 level this morning. Demand for many of the popular Silver investment coins and bars remains strong in the face of limited supplies and the premiums remain high. At 11am PT today, Silver is down $0.08 per ounce, trading at $25.18 on normal volume.