Gold Testing $1,450 Support Level

GOLD

Reports of lower Chinese Gold consumption in October caused Gold to briefly reach the $1,450 major support level this morning. Then, Gold quickly rallied back $8 on technical and bargain buying. I believe this morning’s decline could have been the clean-out before the start of the year-end rally, which should start next week. At 11am PT today, Gold is trading at $1,462 per ounce, up $5 on good volume.

SILVER

Silver also tested support in early Asian trading, reaching a low of $16.78 per ounce, before quickly moving back above the key $17 level. I believe the bullish Silver equity prices is acting as harbinger of the coming December silver rally. Last year Silver rallied 9.8% in the month of December, a similar move would take Silver to $18.78 per ounce. At 11am PT today, Silver is up $0.19 per ounce, trading at $17.10 on excellent volume.