Gold Tests $1,750 Long-Term Support Level

GOLD

Gold tested the $1,750 per ounce long-term support level this morning and held. Sizeable buying demand came in at that support level and Gold quickly rallied $20 to above $1,770. What is very bullish about today’s rally, was that it happened at the same time the U.S. Dollar Index moved to a two-month high of 92.44. This was the second test of Gold’s long-term support and to confirm, we need to see Gold trading back above the key $1,800 level soon to remain bullish. At 11am PT today, Gold is trading at $1,770, up $8 per ounce on excellent volume.

SILVER

As Gold rallied, Silver moved back above the key $26 per ounce level on excellent volume. Silver continues to show more price support demand than Gold at these current price levels. At 11am PT today, Silver is up $0.30 per ounce, trading at $26.08 on good volume.