Low Interest Rates & U.S. Dollar Cause Gold & Silver To Break Out

GOLD

This morning Gold traded above and below the key $1,850 level in Asian and early European trading, until low interest rates and U.S. Dollar caused a breakout. Gold broke out above the $1,855 level and it kept on going, reaching a high of $1,868, when we saw light short-term profit taking. Seeing Gold stay above $1,850 for the next couple trading days would confirm a new trading range with a short-term target of $1,900 per ounce. At 11am PT today, Gold is up $26 per ounce, trading at $1,866 on excellent volume.

SILVER

Silver moved above $27.50 in early trading, then broke out above $28 when gold rallied. Many short-sellers ran to cover when Silver moved above $28, which drove the price to reach $28.30 before seeing light selling. Today’s rally should cause higher demand and premiums on the many popular Silver investment items, considering the current shortage of supply. At 11am PT today, Silver is trading at $28.12 per ounce, up $0.75 on excellent volume.