Daily Market Report 10/30/14

GOLD

Yesterday the Federal Reserve ended its monthly bond purchase program. In a statement after the two-day meeting, the central bank largely dismissed recent financial market volatility, weakening economic growth in Europe, and a weak inflation outlook, as unlikely to undercut its domestic unemployment and inflation goals. The Fed’s action was not a surprise, and both the stock market and precious metals declined. The U.S. Dollar rose to a three-week high against a broad basket of currencies because trader’s expectation of when the Federal Reserve would raise interest rates was put out a few months. After the Fed’s announcement, Gold traded down to $1,207 per ounce, on the highest trading volume this week. This morning Gold tested the very important $1,200 per ounce support level.

At 11am PDT today, Gold is trading at $1,200.43, down $17.47.

SILVER

Silver sold off with Gold yesterday, reaching a low of $17.07 before some professional short covering appeared. Silver continues to show a lack of demand and dropped below the important $17 ounce support level this morning.

At 11am PDT today, Silver is trading at $16.50, down $0.74.