RSS FeedRSS

Gold & Silver Prices Tumble on Fed News

Gold and silver suffered major price blows Thursday morning after investors took time to digest Federal Reserve chairman Ben Bernanke’s words from his press conference the day before. Bernanke hinted heavily that the federal Reserve could soon slow the pace of quantitative easing and other government stimulus programs, and some analysts have predicted that those and other similar measures could be halted by June of next year.

The news was bearish for all commodities, which have seen price increases over the last few years that were due, in part, by the U.S. government’s numerous stimulus projects. Additionally, news that India’s gold imports could decline by as much as 30 percent due to new tax regulations in that country caused a drop in futures prices and created a buyer’s market for most of the afternoon. By 5pm EST the gold spot price was down $70.30 to a two-and-a-half year low of $1282, and the gold price fell as low as $1275 per ounce earlier in the day. Gold bears now have more technical advantage since gold is now lower than in mid-April when the yellow metal fell by 12 percent in two days.

Silver was not spared from today’s shot to commodities’ values and, like gold, fell to a two-and-a-half year low. The white metal fell by more than 8 percent and at the time of this writing silver was down 8 percent for the day to $19.68 per ounce. Gold’s $70 per ounce decline represented a 5 percent loss for the day. Fluctuation for the next few months will depend heavily on whether the Fed continues to flood U.S. markets with diluted dollars.

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