GOLD

A good number of professional commodity traders have recently shorted Gold and will probably cover by Friday or when Gold hits $1,250 per ounce, whichever comes first. Gold does remain on the road to bottom out at $1,250 per ounce, and I believe the turn higher will happen quickly. At 11am PDT today, Gold is trading at $1,254 per ounce, down $4 on normal volume.

SILVER

Wow, Silver reached a low of $16.08 this morning, the lowest level in almost 2 months. Just as Silver is moving towards the $16 support level, Gold is moving to the $1,250 support level. At 11am PDT today, Silver is down $0.13 per ounce, trading at $16.16 on average volume.