Gold & Silver Test Support Levels And Rally Back

GOLD

When Gold started trading late last night in China, Russian news was released. The Russian Central Bank sold 300,000 oz ($1.6 Billion) of Gold in January, when Gold was trading near its $5,580 high. The fact that the Russians sold Gold into the market caused the spot price of Gold to drop $80 in Chinese trading. Gold did reach a low of $5,094, but came roaring back on heavy volume. For the most part of today’s U.S. trading, Gold is staying in the $5,140 to $5,180 area.

What is very bullish today is that Gold mining shares are higher on a $60 drop in Gold.

At 11am PT today, Gold is trading at $5,161, down $49 on excellent volume.

SILVER

In overseas trading last night, Silver reached a low of $84.90 before seeing sizeable buying in China and India. By the time trading moved to London, Silver was back over $88 per ounce. Good demand continued in the U.S., where Silver briefly moved over $89 before seeing resistance and short-term profit-taking.

At 11am PT today, Silver is down $0.20 per ounce, trading at $87.40 on average volume.