Gold & Silver Breaking Out Over Key Resistance Levels

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	Gold Price Looks To Take $1,850 As Markets Fear Emergency Fed Move
	Gold is catching a bid as markets worry the Federal Reserve could opt for an emergency rate hike before the March meeting . . . . Anna Golubova
	Spiraling Inflation And Geopolitical Concerns Result In A Strong Breakout In Gold
	Once again there are dual components that have created the perfect conditions for gold to run dramatically higher . . . . Gary Wagner
	Latest Prediction – Gold At $2,100 By Year End
	I had gone on record in my writings that the gold price would recover from its sharp post-FOMC meeting . . . . Lawrie William
	Why 42 States Have Removed Taxes from the Purchase of Gold and Silver
	Taxing the exchange of dollars for the monetary metals is an atrocious policy for several reasons . . . . JP Cortez
	The US Mint Sells Five Million Silver Eagle Coins In January
	The U.S. Mint reported yesterday that they had sold 5 Million Silver Eagles in January . . . . Chuck Butler, ANALYSIS
	Gold Jewellery Demand Nearly Doubled in India
	The Indian gold jewellery demand almost doubled during the previous year, says the Gold Demand Trends Report 2021 . . . . Scrap Monster

Last Friday at 3:02 PM EST, Gold had a strong and dynamic rally taking the price to $1865 per ounce, which is an increase of $26.60. Within the last 10 minutes of trading, Gold exploded past the $1,850 resistance level and reached a high of $1865.20. What happened during that 10 minutes that caused Gold to jump and the Dow Jones to drop 500 points? "The U.S. believes Russia could take offensive military action or attempt to spark a conflict inside Ukraine as early as next week.", Bloomberg News reported. That news, combined with Thursday’s report of the CPI increasing to 7.5%, strong inflationary news, drove investors to increase their Gold holdings and dump equities. What is interesting about last Friday's trading is that Gold sold off to $1,821 per ounce in the morning when interest rates for the 10-Year Treasury bills reached a 2-year high of 2.05% before seeing sizable selling on the close.

After Gold’s inter-day reversal on February 4th, the direction of the Gold price is firmly bullish. The $1,865 level is a three-month high, but $1,900 is the break-out level I’m hoping to see. This week is important to see if Gold can hold above $1,850 while building a base between $1,850 and $1,900 for the next leg higher. The $1,850 support/resistance level is important for Gold, so I wouldn’t be surprised to see numerous tests of that level during this month.

Today: The breakout rally continues, as Gold traded this morning between $1,854 and $1,873 per ounce. Right now, Gold is showing excellent price support and increasing demand. A higher Gold price in the face of the 10-year Treasury rates rallying over 2% is a good sign.

Silver started the week at $22.45 and increased in price every day, closing at $23.40, up $0.95 for the week. Silver is reacting to both inflationary news as well as the Gold price. If Gold can hold over $1,850, I expect to see Silver move above $24. We are also seeing increased trading volume in both the futures and physical Silver markets, an excellent sign for higher prices. Last week’s strong Silver rally caused the Silver-to-Gold ratio to sell off, dropping back to 78-to-1. As more nations report their inflationary numbers, I am looking for Silver to take a leadership role in the precious metal markets rallies.

Today: As Gold moved above $1,870 earlier today, Silver briefly broke above the key $24 per ounce level, to today’s high of $24.03. Traders are seeing the fear of uncontrolled inflation help precious metals outweigh the concerns of rising interest rates.