Higher Interest Rates & Strong U.S. Dollar Is Causing Precious Metals To Fall

GOLD

Yesterday, after Fed Chairman Powell gave a news conference where he stated the Fed isn’t considering a 75-basis point increase in the Fed funds rate, the markets exploded higher. Gold moved up $40, Silver moved up $0.80 and the stock market rallied 900 points. The reality of higher interest rates (3.10% 10-Year) later this year and the U.S. Dollar Index at a 20-year high (Almost 104), the precious metal and equity markets sold-off today. At 11am PT today, Gold is up $7 per ounce, trading at $1,874 on normal volume.

SILVER

After trading over $23 late yesterday and early this morning, Silver became under selling pressure, and reached a low of $22.27 before seeing short-covering and fresh buying. Demand continues to remain strong, but economic data is keeping the price low. At 11am PT today, Silver is trading at $22.42, up $0.07 from yesterday on strong volume.