Commodities Brief – Precious metals unable to stage recovery after Fed-induced collapse

The price of Gold bottomed out at the 1554.65 level during overnight trading, culminating in the largest decrease in nearly six months as nearly all commodities across the board plunged on concerns emanating from the FOMC. With the state of the US economy in peril, the Fed has left little room for debate over the eventual end to Qe3, however the exact specifics are still unknown. In any scenario, the yellow metal is currently being supported by its 50-day SMA, setting at USD $1565.45 per oz. in these moments, down from a peak of 1570.95 earlier today.

Conversely, Silver prices have also been roiled by the same external stimuli as its metallic counterpart. However, unlike Gold, Silver’s decline has been more swift and has been in retreat, seemingly without respite over the past 24-hours. After peaking briefly at the 28.60 region earlier today, the white metal once again has edged lower in European trading, falling to just USD $29.38 per oz. at this time.

Crude oil could not escape a similar fate as other commodities, with the biggest drop being witnessed overnight as the FOMC did little to quell fears over an all-out siege on commodity prices. Whereas yesterday’s print was the focus of a retest of the 97.00 level – a figure now seen as utterly unattainable today – the price of crude has fallen below the 94.00 level and is trading at just USD $93.80/bbl at the time of writing during European trading Thursday.