Gold and Silver Holding Above Key Resistance Levels

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	Gold Forecast: Continues to Build a Case for a Bottom
	Gold markets continue to be very volatile, initially dipping during the trading session on Wednesday only to turn around . . . . Christopher Lewis
	Perth Mint Gold Bullion Sales Quicken in August
	Australian bullion sales in August picked up for a second straight month for minted gold coins and bars but slowed for minted silver coins . . . . CoinNews.net
	Central Banks’ Appetite For Gold Continues In July
	Central bank demand remained robust in July. Global gold reserves increased by 37t (net), below June’s 64t increase. . . . Krishan Gopaul
	Treasury Yields Rise, Dollar Index Closes Above 110 Pressuring Gold Lower
	Well before the Federal Reserve enacted its first interest rate hike in March the dollar has been on a dynamic upside surge. . . . Gary Wagner
	Silver Looks To Be Heading To An Important Support Area
	Silver has been moving lower in recent sessions and today is no different as the grey metal is trading 0.40% lower. . . . Rajan Dhall

Last week, after Gold reached a low of $1,690 on Tuesday, Gold stayed above the key $1,700 per ounce support level for the remainder of the week. This is surprising considering the U.S. Dollar Index reached a new high of 110.79, and interest rates moved up sharply. Because the U.S. economy is doing substantially better than European and Asian countries, we are seeing a lot of transferring of foreign currencies into the U.S. Dollar. Gold closed the week at $1,716 per ounce, up $7 for the week.

As we approach the next scheduled Federal Reserve Open Market Committee meeting on September 20-21, analysts are looking for another ¾% increase. The Fed is hoping by raising interest rates to slow down the U.S. economy and push the inflation rate lower. The big question is will this Federal Reserve policy lead to a recession. The current unemployment numbers and the last GDP statistics are not confirming a recession.

Today: A small sell-off in the U.S. Dollar Index (down to 108) has helped Gold rally this morning from a Asian low of $1,711 per ounce to $1,735. Strong demand in late European trading and at the opening of U.S. trading drove the Gold price above the $1,730 resistance level. Part of today’s precious metal rally is based on some optimism on tomorrow's release of key U.S. CPI inflation data. If the key inflation rate is under 8% that could be good for precious metals.

After reaching a low of $17.53 on September the 1st, Silver gradually moved back above the key $18.00 resistance level last week. Silver closed last Friday at $18.65 per ounce, up $0.85 for the week. The Silver-to-Gold ratio closed lower at 92.11-to-1 in the past week.

Today: Undervalued Silver flew as Gold moved higher. At one point today, Silver was up over $1 as fresh buying appeared in all Silver markets, physical, stocks and options. Physical Silver reached a high of $19.95 before seeing little short-term profit taking.