The price of both gold and silver took a tumble on Wednesday after the news that the US dollar keeps getting stronger and stronger. For gold, after two days of double digit gains, it took a double digit loss on Wednesday to fall $15.50 to close the day of trading at $1,501.40. Gold did get as high as $1,526 and as low as $1,495 during the day but did end up above the $1,500 barrier for the day.
Silver certainly showed its volatility during the day and the minute gains that it was able to get over the past two days were nearly erased as silver plunged three dollars to close the day of trading at $35.51 an ounce.
There was a small selloff of gold during the day on Wednesday but it was no doubt the news of the improving the US dollar that made the prices of the main precious metals to take their drop. Gold had three consecutive days of gains so the hit for them was really not that hard. The only way that investors are going to tell if any major damage is done is there will be sustained and consecutive days of losses.
There was some hope that the news of higher inflation numbers across the world would help gold and silver but it did not do anything during the day. Another improving number from the economy is the inflated food prices have also taken a drop. The official inflation numbers in the United States are due to be released on Friday of this week and the news of that will certainly have some kind of influence on the precious metals heading into the weekend.
Some investors though are voicing their opinions and letting it known that they have given up on silver. It is still to early to call with silver as with its volatility and unpredictability anything could happen and before you know it the price could be right back up to where it once was.
