Trump Threatening To Control The Fed Drives Gold Higher

GOLD

Gold traded lower after yesterday's close, dropping $15 to $3,357 by 5 pm EST. However, in the early evening, President Trump shared a letter firing Federal Reserve Governor Lisa Cook. Gold traders in after-market trading viewed this as an attempt to take control of the Federal Reserve, and Gold rallied $20 on the firing news. The Consumer Confidence Index dropped to 97.4, down from July’s revised reading of 98.7. This is adding to the feeling that the Federal Reserve will cut interest rates at the September meeting

At 11am PT today, Gold is up $9 per ounce, trading at $3,381 on average volume.

SILVER

Silver also dropped in late trading yesterday, reaching a low of $38.30 before seeing a rally with gold in early morning trading. If silver can build a firm base between $38.00 and $39, it should rally over $40 when gold sets a new all-time high, over $3,500 per ounce.

At 11am PT today, Silver is trading at $38.52 per ounce, down $0.23 on normal volume.