Gold and Silver React to Increase in Fed Funds Rate

GOLD

As we await today’s Federal Reserve announcement, Gold is trading in a narrow range between $1,806 and $1,814 per ounce. The Fed just confirmed a ½ point increase in the Fed funds rate with a hawkish statement about the short-term future. Gold’s initial reaction was to drop $10 per ounce. At 11:05am PT today, Gold is down $8, trading at $1,802 on heavy volume.

SILVER

Silver has been trading above and below the $24 resistance level, as it awaits the Fed news. Silver followed Gold lower after the Fed statement, reaching $23.60 per ounce. At 11:05 am PT today, Silver is trading at $23.60 per ounce, down $0.10 on large volume.