GOLD

This morning Gold broke below the $1,230 per ounce 200-day moving average, quickly hitting a low of $1,220 before seeing short-covering and fresh buying. Since there was no significant negative news, today’s decline appears to be a final clean-out on light volume holiday weekend. This weak-hands clean out normally happens ahead of a major move higher. At 11am PDT today, Gold is trading at $1,221 per ounce, down $22 on light volume.

SILVER

When Gold sold-off, Silver fell at a much faster rate, hitting a low of $16.09 before seeing bargain buying. Silver could reach its $16 per ounce support level before making the turn. At 11am PDT today, Silver is down $0.50 per ounce, trading at $16.15 on light volume.