Lower Interest Rates Speculation Helps Gold Rally

GOLD

Speculation that the Federal Reserve will lower interest rates next week helped Gold rally above the key $1,500 support/resistance level. Just after the spot Gold price moved above $1,500 per ounce, I saw a strong increase in trading volume. I believe that increase was caused by professional traders covering their short sales of Gold. At 11am PT today, Gold is trading at $1,502 per ounce, up $10 on excellent volume.

SILVER

Silver quickly moved higher with Gold this morning, reaching a high of $17.82 per ounce. If Gold can stay above $1,500 and continue the current rally, we should see Silver break back above the key $18 per ounce resistance level. At 11am PT today, Silver is up $0.24 per ounce, trading at $17.79 on good volume.