Gold Hits Low Of $1,767 Over Recent Announcement

GOLD

WOW, Gold hit a low today of $1,767 per ounce this morning on margin call and panic selling. The reason behind yesterday’s and today's drop of almost $80 in the Gold and $1.60 in the Silver price is tied to the US Federal Reserve’s latest policy decision. It indicated that interest rates could raise sooner than expected. Consequently, the US Dollar Index hit its highest level in almost two months (up over 2% to 92), contributing towards the losses in Gold and Silver. Gold needs to move back above $1,800 by early next week to keep the long-term trendline positive. At 11am PT today, Gold is trading at $1,780 per ounce, down $66 on active volume.

SILVER

Silver got hammered with Gold, dropping about $1.60 since yesterday’s trading. A lot of the selling came from professional traders short-selling when Silver broke below the key $27 level. Silver reached a low of $25.78 before seeing short covering and bargain buying. It’s important to see Silver move back above the key $26 long-term trendline to stay positive. At 11am PT today, Silver is down $1.60 per ounce, trading at $25.90 on heavy volume.