U.S. Dollar Index Moves Above 92 & Gold Drops $20

GOLD

Gold was looking good this morning, trading at $1,790 per ounce, until St. Louis Fed President James Bullard talked to CNBC-TV this morning. Mr. Bullard said that he sees an initial interest rate increase happening in 2022 — faster than the expected first increase in 2023. That statement caused the U.S. Dollar index to move above 92 and Gold to drop $20 per ounce. This has been a terrible week for precious metal investors, DO NOT LOSE FAITH IN PRECIOUS METALS. This was what I would call a final clean out, and gives us a 2nd chance to add to our holdings at very attractive prices. At 11am PT today, Gold is down $7 per ounce, trading at $1,773 on excellent volume.

SILVER

Silver traded today from $25.87 on the low to $26.32 on the high. That $26 per ounce level is definitely important to hold by early next week. I believe the margin call selling is now behind us and bargain buyers will get aggressive, particularly in Asian markets. At 11am PT Today, Silver is trading at $25.94 per ounce, up $0.04 on good volume.