Gold & Silver Continue To Test Support Levels

GOLD

Gold continued to test support, reaching a low of $1,484 per ounce in early trading. Demand picks up at the support level and the price moves higher. The U.S. Dollar Index is now trading at two-year high and interest rates have gone up 30 bases points in the past two weeks, with that negative news the bears still haven’t been able to break down the Gold price. I think this is very bullish, so I may be a little premature, but I think that we are done testing support and I believe we will see the price of Gold move back above $1,500 within the next few trading days. At 11am PT today, Gold is up $2 per ounce, trading at $1,496 on good volume.

SILVER

Silver is showing better price support when it tests recent lows, and with the physical price virtually unchanged the Silver mining stocks are starting to move up. This is a sign of a short-term change in direction, and I believe Silver will start moving higher soon. At 11am PT Today, Silver is trading at $18.10 per ounce, down $0.04 on average volume.