U.S. Dollar Hits Fresh Highs Against G10 Currencies

GOLD

Gold has made two attempts to firmly break the key $2,000 price barrier. First, Gold reached an all-time high of $2,070 on August 7, followed by a sell-off to $1,875. Second, Gold reached $2.012 on August 18, followed by today’s sell-off to $1,953 per ounce. It normally takes three attempts to break a key price barrier. I look for the third and final move above $2,000 by the end of the month, making $2,000 a support level on its way to $2,200 per ounce.

Today as the U.S. dollar hit fresh highs against G10 currencies causing Gold to sell-off. Traders are waiting for the release of the minutes from the July Federal Reserve meeting today at 11am PT. At 11am PT today, Gold is trading at $1,964 per ounce, down $40 on average volume.

SILVER

Silver found support this morning at the $27 per ounce level. Right now, we are seeing Silver trade between $27 and $28 per ounce on good volume, waiting for direction from the Gold price. At 11am PT today, Silver is down $0.70 per ounce, trading at $27.33 on good volume.