Federal Reserve Minutes Release Causes Precious Metals To Fall

GOLD

Yesterday in late trading, the Federal Reserve released the minutes from their December meeting. Those minutes clearly stated that the Fed sees a tight labor market and high inflation in the U.S. which might require faster rate hikes and a reduction in the central banks’ overall asset holdings. That news quickly drove the equity markets and precious metal markets lower. The interest rates moved sharply higher and Gold dropped $20 from the day’s high of $1,830 per ounce. Gold continued the drop in oversea trading today as U.S. interest rates were raising. Gold reached a low of $1,786 before seeing sizeable bargain buying. At 11am PT today, Gold is trading at $1,791 per ounce, down $36 on heavy volume.

SILVER

Silver reacted more than Gold on the downside from the Federal Reserve minute release. Silver broke below the key $23 level yesterday and briefly through the $22 support level this morning. Silver reached a low of $21.96 in early trading today before seeing strong demand. At 11am PT today, Silver is down $1.01 per ounce, trading at $22.23 on heavy volume.