U.S. Dollar Index And Interest Rates Move Higher

GOLD

Concerns about the timing of any passage for the $1.9 trillion COVID-19 stimulus relief legislation has caused the U.S. Dollar Index and interest rates to move higher. This resulted in Gold briefly breaking below the key $1,850 level, reaching a low of $1,836 before rallying back. Demand remains strong, and I expect the $1,850 support level to hold. At 11 am PT today, Gold is trading at $1,855, down $11 on strong volume.

SILVER

Silver tested the key $26 level twice yesterday, but couldn’t breakout. Today, Silver broke down with Gold, reaching a low of $25.02 before quickly rallying back to over $25.50 per ounce. At 11 am PT today, Silver is trading at $25.52, down $0.28 on excellent volume.