Precious Metals Rally Back On Negative Economic News

GOLD

Negative economic news hit the market this morning. Retail sales fell in September, for the first time in seven months, plus the U.S. Commerce department reported a decline of 0.3% in household spending. Both were under expectations and equities dropped as precious metals firmed and increased. Gold was trading at $1,474 when the news was released and quickly jumped $15 per ounce. At 11am PT today, Gold is trading at $1,489, up $17 on excellent volume.

SILVER

Silver hit an overnight low of $17.10 and quickly jumped $0.30 on the economic news and bargain buying. Although Silver was still trading lower when the U.S. Markets opened, many Silver equities are currently trading 2-5% higher. A rally in precious metal mining stocks in the face of a declining bullion market is a good indicator of short covering and the near-term direction is higher. At 11am PT today, Silver is down $0.04 per ounce, trading at $17.40 on normal volume.