Prices Move Quick After Margin Calls

GOLD

This morning on Asian and European commodity exchanges the margin calls to Gold contract owners went out. This caused the price of Gold to reach a low of $1,817 before the stronger buyers jumped in. The Gold price needs to spend a few days around or above the key $1,850 level to build confidence with new and long-time investors. That would confirm to me that this decline was the final clean out before a major rally. At 11 am PT today, Gold is trading at $1,849 per ounce, up $9 on excellent volume.

SILVER

Silver investors also received margin calls this morning, pushing the Silver price to a low of $24.30 per ounce this morning. At that level bargain buyers and floor traders stepped in and the price quickly moved above the key $25 per ounce level. A few trading days of base building above $25 would be very bullish for the market. At 11 am PT today, Silver is up $0.21 per ounce, trading at $25.10 on excellent volume.