Daily Market Report 06/21/12

GOLD
Gold prices fell sharply Thursday as the U.S. dollar strengthened after the Federal Reserve dashed investors’ hopes of a big stimulus package. The Federal Reserve did announce the continuation of Operation Twist (selling short term bonds while purchasing longer term securities – in order to support the economy) through the end of 2012. Gold reached a low of $1,563 in overnight trading, before seeing demand rally the Gold price. At 11am PDT, Gold is down $47, at $1,566 per ounce on a large volume of trading.

SILVER
Silver dropped below the $28 support level this morning, because investors were looking for the Federal Reserve to announce QE in the form of expansion of the money supply and the Fed balance sheet to move Silver through the $30 per ounce. Instead they got Operation Twist, where the US Fed simply swaps short dated bonds for longer dated paper. The disappointment took the Silver price down sharply, reaching $26.85 per ounce. At 11am PDT, Silver is trading at $26.98, down $1.47 per ounce on heavy volume.