Gold & Silver Drop Sharply, Due to Future Higher Interest Rates

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	GOLD : The Mother Of All Buying Opportunities, Back To The 70's & The Big Reset
	Gold looks a pretty good bet and the massive price correction gives a great buying opportunity. . . . Ross Norman
	Financial Markets Reaction to the Feds Statement
	The Federal Reserve will keep rates near zero and continue to purchase assets . . . . Jason Capul
	Gold Bullion Sales Rose 360% in May
	During May 2021, the U.S. Mint sold 20,500 ounces of Gold American Eagles . . . Mike Fuljenz
	France's Macron Urges G-7 To Sell Gold Reserves to Fund Bailout for Africa
	Macron told a news conference he would like the sale of gold reserves to help finance this planned aid for Africa . . . . Tyler Durden
	Gold Imports By China Hit Fresh Record In April
	The gold market commentary released by the World Gold Council (WGC) indicates significant surge . . . . Paul Ploumis
	Central and Eastern European Banks Rush To Increase Gold Reserves
	Hungary tripled its gold reserves to a total of 95 tons, the largest per person in Eastern and Central Europe . . . . Cristian Gherasim

Wow, Gold hit a low of $1,765 per ounce last week on margin calls and panic selling. The reason behind last week’s $100 drop in Gold, and $2.18 for Silver is tied to the US Federal Reserve’s latest policy decision. It clearly stated that interest rates could rise sooner than expected. Consequently, the US Dollar Index hit its highest level in almost two months (up over 2% to 92.30), which contributed towards the losses in Gold and Silver.

This has been a terrible week for precious metal investors, and I have seen similar sell-offs in the past that never lasted very long. DO NOT LOSE FAITH IN PRECIOUS METALS. This was what I would call a final clean out, which means a shake out of weaker futures investors who are under-capitalized and are unable to meet margin calls, it gives physical investors a second chance to add to our holdings at very attractive prices. A sell-off like this rarely lasts long, because normally, the sell-off stops and quickly rallies at least one percent off the low. Then, builds a base and starts moving higher. I believe we will see Gold move back above $1,800 by the end of this week, and back on the road towards $1,900 per ounce.

Today: This morning, Gold firmed up above the recent low of $1,765 and saw sizeable bargain buying. Then the price moved higher as the U.S. Dollar Index broke back below the key 92 level, reaching a high of $1,788 before seeing some light selling. Interest rates remaining low could be the key factor for the move toward $1,800 later this week.

Following Gold’s decline, Silver reached a surprising low of $25.75 last Friday. That means it broke down below both the $27 and $26 support levels in one week, on the highest CME trading volume I have seen in four months. Silver closed the week on Friday at $25.84 per ounce, down $2.18. Just as premiums on the many popular Silver investment products were beginning to fall, last week’s decline caused increased demand on Friday. The Silver-to-Gold ratio increased last week to 68.12-to-1.

Today: Silver did reach a low of $25.52 in Asian morning trading before seeing fresh buyers come in.
As markets rolled in Europe, Silver rallied and moved towards the key $26 per ounce level. In morning U.S. trading Silver broke back above $26, reaching a high of $26.13 per ounce.