We got the anticipated pullback in Gold right on schedule the night before the FOMC meeting on Wednesday. It dropped from a high of 1975 to support at 1900. Given Silver’s dramatic outperformance relative to Gold, it was no surprise that the dump in Silver was far more precipitous. Silver fell ~15% between 10pm Tuesday and 3am Wednesday morning. That’s equivalent to a drop of ~500 points in the S&P from 3200 to 2700, “in just five hours”. Black Monday type moves.
In last week's article, I pointed out that the price of gold bullion was showing impressive strength, threatening to surpass its old all-time high of $1,920.70 USD per oz., set previously nine years ago in 2011.