Bears Take Swipe At Gold Price On Fed Announcements

GOLD

Yesterday was a key date in the short-term direction of the Gold price. When the Fed Chairman made his announcement about the state of the US economy and lowering the Fed’s interest rate a quarter point, Gold was trading at $1,508 per ounce. Although, there was nothing unexpected said, the bears took control of the market and the price of Gold started to fall, reaching a low of $1,482 per ounce. At that point, major buying appeared and the price moved back up to $1,496 per ounce. I think that this could be the last attempt by the bears to breakdown the Gold price. Today, Gold opened at $1,494 and has spent most of the day in the $1,496 to $1,507 price area. At 11am PT today, Gold is down $7 per ounce, trading at $1,501 on good volume.

SILVER

Silver continues to be much more volatile then Gold, reaching a low this morning of $17.53 before rallying with Gold, moving the price back to $17.90 per ounce. Right now, a number of the professional commodity traders are executing short-sales when Silver nears $18 with a buy-stop if it reaching $18.10. Therefore, a move above $18.10 would be very bullish for Silver. At 11am PT today, Silver is trading at $17.84 per ounce, down $0.02 on normal volume.