Gold Prices Drop to a 2 Year Low

GOLD

An ugly day for Gold investors, with the price dropping to a 2-year low of $1,660.40 per ounce. The initial drop below the key $1,700 level set off the first wave of short-selling, taking the price down to $1,685. With no sign of sizeable buying at that point, the 2nd wave of short-selling caused Gold to reach a low of $1,660.40. With another Federal Reserve meeting scheduled for next week and U.S. August retail sales surprisingly increase by 0.3% precious metal markets were hit. At 11am PT today, Gold is trading at $1,667.50 per ounce, down $32.50 on heavy volume.

SILVER

The Silver price dropped with Gold this morning, testing the $19 per ounce support level. Silver reached a low of $19.10 before finding bargain buying. Looking at the recent lows for precious metals, Silver appears to be a stronger demand market. At 11am PT today, Silver is down $0.35 per ounce, trading at $19.25 on heavy volume.