Precious Metals Took A Sharp Decline After Powell Announcement

GOLD

When I woke up this morning, Gold was trading at $1,806 per ounce. Then, came the Federal Reserve Chairman Powell’s testimony to Congress, where he said the Fed could taper its bond-buying faster the original planned. That statement would cause interest rates to increase, so the equity and precious metal markets took a sharp decline. Gold reached a low of $1,770 before seeing heavy buying. At 11am PT today, Gold is trading at $1,780 per ounce, down $7 on heavy volume.

SILVER

Silver reached a low of $22.68 on Powell’s testimony, but recovered quickly on strong bargain buying demand. Demand for most of the popular physical investment items is increasing and so are the premiums. At 11am PT today, Silver is trading at $22.97 per ounce, unchanged from yesterday on strong demand.