Gold and Silver Prices Drop
Gold and Silver prices drop sharply as October ends. Today, October 31, Gold trading down $26.00 (-2.25%) currently putting spot gold at $1172.00 per troy ounce, Silver is currently down .32 cents (-2.00%) at $16.25 per troy ounce. On the week, Gold was down 5.3%, reaching price points not seen since 2010!
On Wednesday, Oct. 29th, The Federal Reserve announced they were ending QE3, the third round of Quantitative Easing. Quantitative Easing was the Fed’s multi-billion dollar bond buying stimulus program. This announcement from the Fed forced metals traders into sell mode on Wednesday, and the trend continued for the rest of the week. Today, Friday Oct. 31, the Bank of Japan announced an aggressive expansion of it’s quantitative easing program, which caused both U.S. and Japanese stock markets to skyrocket and also bolstered the value of the U.S. dollar. News of this put even additional downward pressure on the precious metals markets.
Many market analysts are closely watching Gold and Silver prices to see if they have reached important support levels (“The Bottom”), or if they will continue to trend downward. Next week’s should reveal some indications as to where the metals go from here. If in fact the precious metals have bottomed out, it may prove to be a great opportunity to add some physical Gold and/or Silver to your holdings. If you already own some Gold or Silver purchased at higher prices, this could be a good time to purchase more and bring your net average price down.