Gold Testing Above $1,650 is a Good Sign That The Bottom Has Been Reached

GOLD

Gold tested its key $1,650 support level, and traded down to $1,640 in Asian trading. Gold found strong buying on the Europe and U.S. Markets and moved back over $1,650 to a high of $1,665 before seeing light selling. At this point holding above $1,650 is a good signal that the bottom has been reached. At 11am PT today, Gold is down $2, trading at $1,658 on excellent volume.

SILVER

Silver did hit a low of $18.47 in Asian trading, but came back with Gold later in the trading day. Silver showed excellent support above the $18.50 level, but if Gold stays above $1,650, Silver should test the $19 level. At 11am PT today, Silver is trading down $0.15 per ounce, at $18.75 on good volume.