Gold rallied after yesterdays FOMC statement

GOLD

Gold rallied yesterday after the FOMC statement was released. It seems the Fed is projecting rather tame inflation for the next few months and possibly longer. This caused the Dollar to sell off and the precious metal markets to rally. Heavy short covering and bargain buying hit the market. Today, Gold tested the $1,260 level, hitting a high of $1,259.40. Gold has remained above $1,250 today, trading in a narrow $9 range. At 11am PDT today, Gold is trading at $1,256 per ounce, up $9 on above average volume.

SILVER

Silver also rallied yesterday after the Fed statement. Silver broke above the $16 level this morning, hitting a high of $16.14 before seeing selling. I want to see how we test the $16 level while the market is doing what looks like a little short term profit taking, like Gold is. Based on the trading activity I’m seeing, we should be holding above the $16 level shortly, it’s just a question of when. At 11am PDT today, Silver is trading at $15.95 per ounce, up $0.09 on good volume.