Gold is quiet in anticipation of Fed announcement

GOLD

Gold has been fairly quiet this morning in part from the anticipation of the latest news from the Federal Reserve regarding future rate changes and the economic outlook. The Fed news is scheduled to be released at 11am PST today. Another reason Gold has been seeing a lack of support this week is the Chinese New Year, which causes the Chinese to be on vacation all week. Next week, when they are back from vacation, should be a good week because the Chinese love bargains. At 11am PST today Gold is trading at $1,335 up by $3 on low volume.

SILVER

Silver is following Gold’s behavior, awaiting the Fed’s news. If the news is positive for precious metals, I’d like to see Silver clear the $16.70 mark to challenge the $17 per ounce level again. If the news causes a correction in precious metals, I would expect to see weak hands clear just above $16 per ounce, however, recent trading activity indicates most have already cleared in anticipation of the next run. At 11am PST today, Silver is trading at $16.80 up by $0.28 on quiet volume.