Chairman Powell Hinted At Aggressive Interest Rate Hike Yesterday

GOLD

Fed Chairman Jerome Powell said late yesterday that an interest rate increase of 50 basis points “will be on the table” for the May Fed meeting. That comment is considered as being very aggressive on monetary policy to date. Our central bank is working on combating a 40-year high in inflation rates and raising the Fed Fund rates is just one tool. Gold reacted initially by falling to $1,926 per ounce before seeing sizeable buying. At 11am PT today, Gold is trading at $1,935, down $12 per ounce on normal weekend volume.

SILVER

Silver got hit with Gold and tested the long-term $24 per ounce support level, reaching a low of $24.06 before seeing bargain buying. Demand for many of the popular Silver investment coins and bars remains strong in the face of limited supplies and the premium remains high. At 11am PT today, Silver is down $0.30 per ounce, at $24.28 on heavy volume.