Gold & Silver Market Update

The gold price and the silver price both suffered shocking losses on Wednesday morning, with gold down over 3 percent and silver down 4.4 percent. By 1pm CST the gold spot price was $1223 and the silver spot price was down $0.87 to $18.87. This means that gold and silver are approaching three-year lows as the dollar is fast-approaching a three-week high.

The growing dollar index is far from being the only factor causing gold and silver prices to fall. News that China’s economy grew less than expected in the previous quarter caused buying from that nation to slow, and India has seen gold buying down heavily in the last two months, since a new tariff on gold imports to that country was announced.

Gold and silver have also been plagued by one man, Federal Reserve chairman Ben Bernanke. Bernanke has promoted stimulus programs for years as a way to help the United States recover from the recession, but many critics of Bernanke’s stimulus efforts have claimed the analogy of Bernanke’s stimulus for the economy to life support for someone who is technically dead – you may call it life but as soon as it is removed the true state of the being will appear.

Talks of slowing or even ceasing the Fed’s stimulus measures have shocked the gold market in the short-term, as investors move to stay liquid. Although rumors of ending the stimulus programs have hurt gold in the near-term, gold and silver market analysts believe that prices could rise significantly once the stimulus programs are officially halted. For more information on the Fed’s ability to manipulate gold and silver prices visit the market update page again next week.

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