Since our last update, the gold market has been driven higher by market bulls, with gold currently at $2685 (at the time of writing.) It has traded from a low of around $2645 to a high of $2697 for a range of $52. The market tested our resistance level around $2660 several times before making this move higher and now support should be at $2660 with resistance at the $2700 mark. Since our last update, silver has moved higher, but not as much as gold. It is currently trading around $29.96, but since our last update it has moved down to $29.49, a total range of $1.16. The interesting thing about silver is that we are approaching the 90:1 ratio, which usually indicates that silver is ready to move up, at least historically. Currently, the ratio is 89.622 ounces of silver to 1 ounce of gold. As for silver support, it appears to be at $29.50, with resistance at $30.

Some economic figures and events will be released today: the year-over-year core inflation rate, the month-over-month core inflation rate, and the CPI, all at 8:30 am. Barkin and Kashkari will speak at 9:20 and 10 am ET respectively. Everyone will be watching the numbers and events for signs of further rate cuts or outlook on the US economy, as we all know this influences movements in the metals markets.

Josh Perez

Managing Director

Chief of Global Trading