Gold Tests And Holds $1,800 Support Level

GOLD

Gold rallied this morning to $1,814 per ounce in Asian markets. As it rolled in the European market it tested the $1,800 support level and held. As Gold trading moved to the U.S. a lower than expected U.S. Producer Price Index and dollar help Gold move to $1,810 per ounce. At 11am PT today, Gold is trading at $1,810 per ounce, up $9 on excellent volume.

SILVER

As the Gold price moved higher, Silver jumped above the important $19 per ounce resistance level and didn’t stop. Professional traders who shorted Silver at $19 ran for cover and the price reached a high of $19.40 before stopping. Hopefully $19 will become the next support level, but with Silver's recent volatility I believe it will break $19 at least briefly this week. Silver could become the lead precious metal if its recent strength continues, and weathers any serious correction. At 11am PT today, Silver is up $0.59 per ounce, trading at $19.32 on excellent volume.