Chairman Powell's Testimony Causes Metal Prices To Drop

GOLD

This morning Fed Chairman Powell testified to the Senate finance committee. During that testimony he clearly warned us that the Federal Reserve may need to raise interest rates more than anticipated in response to the recent surge in strong economic data. He also suggested that if needed, the central bank could take larger steps to control inflation, a move that could come sooner than anticipated. Tomorrow, the Chairman will be testifying to the House Finance committee.
Powell’s hawkish remarks to the senate caused the U.S. Dollar Index to surge (over 105.5) and equities and precious metals sold-off. The Gold price dropped $36, per ounce, reaching a low of $1,812 before seeing some light bargain buying and short-covering. At 11am PT today, Gold is down $1,815 per ounce, down $33 on heavy volume.

SILVER

Silver sold-off with Gold, dropping $1 to $20.05 per ounce. $20 is a key long-term support level, and its important Silver hold that level for the short-term direction of the price. At 11am PT today, Silver is trading down $0.95 per ounce, at $20.10 on excellent volume.