Weak Economic Numbers Help Metal Markets Rally

GOLD

Gold rallied this morning on weaker dollar, caused by weak U.S. economic numbers and surprising growth data out of China. U.S. manufacturing (ISM) and construction dropped in January, more than expected, causing lower interest rates and higher precious metal prices. Gold rallied from $1,829 to $1,846 before seeing some short-term profit taking. At 11am PT today, Gold is trading at $1,838 per ounce, up $9 on good volume.

SILVER

Silver rallied with Gold breaking above the $21 per ounce resistance level and reaching a high of $21.27 before selling off. The $21 price level is very important to the short-term direction of the Silver price. At 11am PT today, Silver is up $0.10 per ounce, trading at $21.03 on excellent volume.