World’s Largest Central Banks Adding Liquidity

GOLD

The Gold price surged $30 per ounce this morning, as the Dow-Jones equity dropped over 800 points. The major news event is the spread of the coronavirus in China, South Korea, and Italy. China is virtually closing down as manufacturing stops and airlines cancel flights to and from. The feeling in the financial markets is that many of the world’s largest central bank will be adding lots of liquidity into their economies to counter the slowing down. Gold reached a high of $1,686 in over-night Asian and European trading before seeing some short-term profit taking. At 11am PT today, Gold is trading at $1,672 per ounce, up $53 on excellent volume.

SILVER

Silver reached a high of $18.86 per ounce this morning, an extraordinary $0.40 rally. At that price there was some profit-taking, but Silver shows excellent support over $18.60 per ounce. At 11am PT today, Silver is up $0.53 per ounce, trading at $18.89 on excellent volume.