Lower Interest Rates Fuel Gold & Silver Rally

GOLD

The U.S. 10-Year Treasury rate hit 1.54% today, the lowest rate for the past few months. This drop in interest rates fueled a rally in Gold. For the third and I believe final time, Gold broke above the key $1,750 resistance level and kept on going. Professional traders short-covering drove the Gold price to a high of $1,770, a $35 increase, before seeing light selling. At 11am PT today, Gold is trading at $1,766 per ounce, up $31 on excellent volume.

SILVER

Silver rallied with Gold, briefly moving above $26 per ounce, before seeing some short-term profit taking. Building a firm base above $25.50 would be key now for the long-term rally back to $30 per ounce. At 11am PT today, Silver is up $0.48 per ounce, trading at $25.88 on good volume.