Tuesday, January 10, 2012

Gold Climbs Above 200 DMA, Silver Rallies $1

Live 24 hours silver chart [ Kitco Inc. ]Gold has rallied nearly $30 to $1641.70 this morning, strongly through and above its 200 day moving average, which currently sits near $1630.  Look for gold to correct back to $1630 and retest the 200 DMA which had been acting as resistance, and for the level to turn into massive support.  IF gold bounces back up off of $1630 and can hold above this level through today's close, we are likely to have seen the bottom in gold.

Live 24 hours gold chart [Kitco Inc.]

Silver is looking just as strong this morning, added nearly $1.50 from $29 to nearly $30.50.  Similarly to gold, look for silver to drift back towards the previous resistance level of $30.  Again, should silver bounce back off the now support level of $30 and hold this through the close, this will be the first major sign that we saw a bottom a week and a half ago at $26. 

Live 24 hours silver chart [ Kitco Inc. ]