Gold and Silver Testing Recent Lows and Long-Term Support

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	Gold Slides Over 2% As Strong Jobs Data Raises Fed Taper Worries
	Gold slid to its lowest in over a month on Friday after a strong U.S. jobs report boosted expectations . . . . Nakul Iyer
	Gold Imports Into India Jump To Highest In 3 Months
	Gold imports into India jumped to the highest in three months in July as economic activity picked up after coronavirus-related lockdowns eased . . . . Bloomberg
	10-year Treasury Yield Drops To 1.15% Amid Disappointing Data, Delta Variant Concerns
	Treasury yields dropped to start the week after economic data pointed to a slowdown in growth . . . . Yun Li
	U.S. Mint Gold Bullion Sales Rose 32% In The First Half of 2021
	Sales of both types of U.S. gold bullion coins were up 32.4% in the first half of 2021 versus the same six months in 2020 . . . . Mike Fuljenz

Although Friday’s surprise increase in U.S. employment caused an uptick in interest rates and moved the U.S. Dollar to recent highs, it resulted in Gold falling sharply. Gold dropped $45, down to $1,760 per ounce on Friday and kept on falling when Asia opened last night. Gold actually hit a low of $1,677 on very low volume, then trading volume picked up as bargain buyers appeared.
Gold rallied quickly to $1,740 per ounce before seeing active two-way trading.

Friday’s news also included the unemployment rate falling to 5.4% down from 5.9% in June. Wages also rose more than expected in July. All around, last Friday was not a good day for Gold investors.
After the recent selloff, Gold needs to regain confidence with professional commodity traders and investors. A move back above $1,750 and $1,800 would be great, but if Gold could just build a fresh base above the key $1,700 level for a week or two it would start to build confidence.

Gold’s long-term fundamentals continue to look outstanding, it’s just the technical that looks bad. Gold re-testing the 2021 low of $1,677 caused technical analysts to be concerned. Because that test on the bottom was done on very thin trading volume and it quickly rallied back, it could be a bullish indicator, but we need to see what happens over the next week.

Today: After a highly volatile weekend, with Gold briefly breaking below the $1,700 support level, Gold saw bargain buying in late European and U.S. trading. We are seeing very large trading volume on all of the world’s largest Gold commodity exchanges, which is very important to the short-term direction of the market.

Silver dropped to $24.32 last Friday, down $0.96 per ounce on the employment news. In last night’s Asian trading, Silver reached a low of $22.30, like Gold on very light volume, before seeing heavy buying bringing the price up over $1.50 per ounce. As European trading opened last night, Silver continued to see excellent buying and was trading between $23.80 and $24 per ounce. Similar to Gold, Silver also needs to do some base building. Trading between $24 and $25 for a few weeks would show badly needed price support. The Silver-to-Gold ratio moved over 73-to-1 during this selloff.

Today: Silver is trading today at $1.00 less than Friday’s close on large volume, as it tries to establish a new trading range. At the current trading price, Silver represents an excellent value based on the high probability of an increased inflation rate we will be seeing soon.