Gold Trying to Stay Above $1700 Resistance Level

GOLD

Just as a number of commodity houses were saying Gold will bottom out at $1,600 and traders were short selling Gold, thinking that $1700 is a resistance level it couldn’t break. Gold broke above $1,700 this morning and all those short-sellers ran for cover and drove the price of Gold up $35 per ounce today. Interest rates, after moving above 1.60% for the 10-Year Treasuries did head lower, but the U.S. Dollar Index is staying above 92. We need to see Gold stay above $1,700 for the balance of the week, to confirm the worst is behind us. At 11am PT today, Gold is trading at $1,720 per ounce, up $38 for the day on excellent volume.

SILVER

Silver followed Gold higher this morning breaking above the key $26 level and staying there. The Silver price continues to show its more explosive than Gold, so any continued strength in the Gold price could take Silver back above $27. At 11am PT today, Silver is trading at $26.10 per ounce, up $0.90 on excellent volume.