By Barry Stuppler – MintStateGold.com
Gold hit $1,701.70 in overnight trading and quickly bounced back to $1,730. It looks like the $1,700 area has major support for Gold. Building a base in the $1,700 to $1,775 area for the next two to three weeks would be very supportive of the long term market health, while representing good value considering the recent high of $1,912.60 per ounce. At 11am PDT gold is trading at $1.757.20 an ounce on excellent volume, down $7.80 from yesterday at the same time.
Silver’s price is actually behaving better than gold. Silver hit $38.76 in overnight trading before I saw major buying come in. Silver came down with Gold on Tuesday and Wednesday, but sizeable buying in the $38.76 to $39.50 area has given Silver the support needed to get it back above the important psychological $40 per ounce level. Silver has excellent trading demand today, trading at $40.70 at 11am PDT, up $1.23 per ounce on heavy volume.
Other Important news that affects precious metal prices:
U.S. durable goods orders jumped 4.0% in July, mainly because of higher production and demand for Japanese autos and commercial Boeing aircraft orders, the government reported Wednesday. The jump was higher than expected.