Gold Down $36 Due To Recent Federal Reserve News

GOLD

A Federal Reserve president gave indications last night that the Fed may be tapering back the stimulus in the near future, causing a quick sell-off in the precious metal markets. This news also drove up the U.S. Dollar Index by .7%. European profit taking added to the $30 decline in the Gold price. At 11am PT today, Gold is trading at $1,872 per ounce, down $36 on heavy volume.

SILVER

Silver sold off with Gold, briefly breaking below the key $27 per ounce support level. I believe this precious metal sell-off will not last long, and represents an excellent buying opportunity. At 11am PT today, Silver is trading at $27.45, down $.70 per ounce on heavy volume.