On a Gold Price Move Higher, Silver Price Will Follow

Source:

"Over the last two weeks gold's moves have not been proportional to the US$ move. . ."

Gold Price Close Friday: 940.70 Gold Price Close 19th of June: 935.6 Change: 5.10 or 0.5%

Silver Price Close Friday: 14.128 Silver Price Close 19th of June: 14.189 Change: -6.10 cents or -0.4%

Gold Silver Ratio: 66.58 Gold Silver Ratio 19th of June: 65.94 Change: 0.65 or 1.0%

DJIA: 8,438.39 close Friday DJIA close 19th of June: 8,536.03 Change: -97.640 or -1.1%

US Dollar Index: 79.83 US Dollar Index 19th of June: 80.268 Change: -0.440 or -0.5%

The markets have been in a tug of war all week last week, and now the gold price stands US$5.00 + on the week, the silver price has fallen 6 cents, the US$ has sunk, and stocks have fallen a bit too.

Since the US$ hit the high on 15 June at 81.085, it has established a firm down trend. Friday the US$ ended up at 79.828, down 44 more basis pts.

Over the last two weeks gold's moves have not been proportional to the US$ move, and some days they moved the same direction. The dollar is one driver of gold, but for sure not the only one in here lately.

Last week it looked likely that the gold price would correct south to US$900 oz, it stopped at US$918 and rose to close the week at US$940.70 (Comex), up $5.10 from the week prior.

We should expect an attack on the gold price on Monday, but if the gold price can hold on to US$930 next week, then the low is behind us.

The silver price, always more volatile than the gold price took a hit last week, but closed up 12.3 cents on the day ending the week down 6.1 cents at $14.12.

Right now, silver is following gold, and should continue in here.

Gold is looking more and more like it is reaching for US$1,000 oz before the fall in an out of season move.

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