Gold & Silver Starting Their Year-End Rally To New Highs

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	China’s Central Bank Says All Cryptocurrency-Related Activities Are Illegal ; Vows Harsh Crackdown
	China’s central bank renewed its tough talk on bitcoin Friday, calling all digital currency activities illegal and vowing to crack down on the market . . . . Ryan Browne
	75 Tons More Gold In Forex Kitty Adds To Stability
	Data from the Reserve Bank shows that the central bank held 743.84 metric tons of gold as of September 2021 . . . . George Matthew
	Silver Rallies as Treasury Yields Decline
	Silver is currently trying to settle back above $23.90 while the U.S. dollar is moving higher . . . . Vladimir Zernov
	Real Action On Gold Prices Will Begin If It Touches $1,835
	The next 'buy' action will kick in as and when gold heads up to $1,835 again . . . . Tomasz Wisniewski
	Silver’s Fuse Is About to Be Lit
	We like the silver play, for instance because gold is somewhat in the limelight in battle with Bitcoin, consequently, allowing silver to shine while it is typically in the shadows . . . . Korbinian KollerCommodities
	Silver Institute October 2021
	Silver's Role in Global Connectivity Expected to Grow 10 Percent from 2020 to 2025 . . . . Silver Institute

Last week Gold showed a $33.00 increase, closing Friday at $1,816 per ounce. The Gold increase was primarily due to the United States adding 531,000 new jobs in October, above the 425,000 number expected. The August and September employment figures were revised up as well. The U.S. unemployment rate is down to a 2021 low of 4.6%. That news drove down the 10-Year Treasury interest rates to a 1-month low of 1.44%. Both the employment jump and interest rates dropping helped Gold rally above the key $1,800 per ounce resistance level.

After Gold tested the $1,750 support level last Wednesday, it increased $60 on strong demand. Holding above $1,800 this week is important, but more important is breaking the $1,835 short-term resistance level. The $1,835 resistance level has not been broken since June 2021, and many experienced commodity traders know that. So, as Gold approaches that level this month, traders will short-sell Gold with hopes they can make a $20 to $30 per ounce profit. But, if Gold can break the $1,835 level, they will quick buy to cover those short-sales and in many cases start buying, looking to take profits at $1,900 or above.

Today: Gold hits a two-month high early today of $1,827 per ounce, as concerns about an interest rate increase for the short term have been put on hold. Continued low rates make the precious metal more attractive as an alternative investment. The key $1,835 breakout level is in my sights for later this week.

Last Thursday and Friday, Silver rallied $0.90 per ounce, closing the week at $24.15 per ounce. Silver spent most of last week trading above and below the key $24 level, but the strong increase in U.S. employment pushed it over the top. Like Gold, Silver has seen a resistance level, which is $25 per ounce. Silver has tested that level numerous times since August 2021, but has failed to break through. The Gold-To-Silver ratio is trading at 75.2-to-1 right now. Down from 78-to-1 at the beginning of October. In this Weekly Market Report, there is an excellent report from the Silver Institute that is well worth reading.

Today: Our Federal Reserve, the Bank of England and the European Central Bank last week indicated that inflationary concerns, which might have been expected to trigger interest rate increases, are taking a back seat for the next few months at least. That inflationary concern helped Silver rally to $24.52 this morning on fresh buying.