Gold & Silver Sell-Off After Warsh’s Speech

GOLD

Gold reached a low of $4,571 in trading in China and India, but moved back above $4,600 during London trading.
Gold sold off again in the U.S. after Federal Reserve Chairman Warsh said inflation is a bigger concern than a slowing labor market.
Gold broke the key $4,500 per ounce support level and reached a low of $4,454 on this announcement.
The concern Gold investors reacted to was that Warsh’s statement is likely to mean higher interest rates in mid-September.

At 11:30 am PT today, Gold is trading at $4,460 per ounce, down $147 on sizeable volume.

SILVER

Silver broke out above $70 per ounce, reaching a high of $71.23 during trading in London.
Then, saw selling on Chairman Warsh's announcement, driving the price down to $66.20 per ounce.

At 11:30 am PT today, Silver is down $3, trading at $66.41 per ounce on large volume.