Possible Federal Reserve Tapering Causes Gold To Fall

GOLD

Today, the Gold price dropped $20 per ounce, reaching a two-week low, ahead of a crucial Federal Reserve announcement. That announcement is causing investors to fear a faster-than-expected tapering of the central bank’s pandemic stimulus measures. At 11am PT today, Gold is trading at $1,768 per ounce, down $23 on strong volume.

SILVER

Silver briefly broke the $23 key support level, reaching $22.96 per ounce, before quickly rallying higher on excellent volume. One of the indicators I use for following the direction of the precious metal price is mining equities. Many of those Gold/Silver mining stocks saw a sharp drop on the open, but quickly rallied back and some are higher on the day. This is an excellent indicator of the Gold/Silver price reaching a bottom and rallying back. At 11am PT today, silver is down $0.26 per ounce, trading at $23.32 on excellent volume.