Strong Consolidation Continues For Gold & Silver

GOLD

Gold continues to trade right around the key $1,500 per ounce level, building an excellent base for the next leg higher. This is very strong considering the fact that Gold was trading at $1,432 at the beginning of this month. Tomorrow the Fed Chairman will speak at the Jackson Hole conference. The Chairman could give us a short-term direction, but the long-term bullish sentiment appears well in place. At 11am PT today, Gold is trading at $1,500 per ounce, down $5 on average volume.

SILVER

Silver traded under $16 on August 1st, now we are over $17 per ounce, 3 weeks later. This is very impressive in terms of a short-term rally. Now, Silver has found excellent support at the $17 level. Silver could break the $17.50 level when Gold starts moving. At 11am PT today, Silver is down $0.08 per ounce, trading at $17.07 on normal volume.