Gold And Silver Testing Support Levels Before Next Leg Higher

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	A Scramble For Gold Redraws The Market's Map
	New York faces a gold rush after the pandemic threw precious-metal markets into disarray, setting. . . .Joe Wallace and Anna Isaac
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	With the exception of gold, commodity prices will stay on a downward path and are at greater risk. . . .Bloomberg Commodity Index
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	The Federal Reserve left interest rates unchanged Wednesday and committed to maintaining its. . . .Anneken Tappe - CNN Business
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	The latest data published by the U.S. Census Bureau points to notable surge in gold imports by the country during. . . .Paul Ploumis

An extraordinary quote that came from Fed Chairman Powell last week, “We’re not even thinking about, thinking about raising rates” affected the financial markets. Powell clearly said the Fed will keep stimulus coming for years. Last Thursday, the Federal Reserve reported the Household net worth declined a record $6.5 Trillion in the first 4 months of the year. Many market analysts are feeling that the Fed’s concerns and the DJIA dropping over 1,500 points last week indicate more trouble ahead. Gold rallied and closed Friday at $1,730 per ounce, up $48 for the week.

Last week, Gold broke below the key $1,700 per ounce support level and reached a low of $1,675 per ounce. Gold reached that low on Monday, and every day after that, trading volume picked up on excellent demand. After breaking above $1,700 on April 9th, Gold has tested that support level six times and every time quickly rallied back above. This indicates to me that the price wants to move higher. Gold reached the yearly high of $1,780 on April 14th and I think it will make a new high very soon.

Gold demand has soared in Asia and there is solid demand from the Middle-East and Europe. U.S. Gold imports have increased over 400% this year, and the U.S. Mint is backlogged on the popular Gold Eagles and Buffalo coins.

Today: Gold tested the key $1,700 support level this morning, reaching a low of $1,702 before seeing bargain buying on excellent volume. The key to this morning’s correction was a strong U.S. Dollar Index, at more than a one-week high. Gold rallied back above the $1,720 level.

Silver was looking good last Thursday, reaching a high of $18.37 per ounce. On Friday, Silver got slammed, closing the week at $17.47 per ounce, up $0.02 for the week. In May, Silver rallied from $14.85 to $18.40 per ounce. Now, in June, Silver has traded from a high of $18.85 to a low of $17.45 per ounce building a base for its move to $20 per ounce.

Silver may need to test its major support level of $17, for a final clean out, before moving higher. The Silver-to-Gold ratio has increased to 98-to-1.

Today: Silver led the Gold price lower, as Silver broke below the key $17 level, reaching $16.92 before rallying back. This morning's drop and rally came on excellent trading volume.