Gold & Silver Prices Rebound After Federal Reserve Speculation

Gold and silver prices were down again on Tuesday afternoon due to speculation that the Federal Reserve could scale back its monthly $85 bullion purchases of its own debt. Such a move could curb enthusiasm for the yellow metal, but price movements at the opening of trading on Wednesday seemed to tell a different story.

Gold jumped $9.90 Wednesday morning, 0.72 increase, to rise to the $1398 range and ever so close to the psychologically-vital $1400 mark. Silver showed an extremely healthy (and unexpected) increase on Wednesday as well, jumping $0.78 (a 3.52 per cent increase) to break the $23 per ounce barrier and inch closer to $23.50, which is what most analysts agree is the next upward support level for that metal.

Gold and silver are still undervalued, according to many economists and precious metals analysts, who have said that the 17 percent loss in silver in the last 365 days, and the 12 percent loss in gold during that same time, serve to show our government’s and banks’ ability to manipulate hard asset markets, even if the scheme is only viable for a couple of years.

“People looking for fast profits may not be ready to jump back into the market because there is some speculation of another 3-5 percent drop in gold and silver prices over the next month or two, but long-term investors who are more interested in preserving wealth could see today’s gold and silver prices as excellent opportunities to dollar-cost average their investments and save a lot of money,” according to COMEX trader Vipin Patel.

GS social media share img

Get Your Complementary Award Winning Guides Below

 Publish Real Money Magazine

 Publish Gold Investment Magazine

 Publish IRA 401K Kit Magazine

 Real Money Magazine