Market participants anxiously awaited results of the Federal Open Market Committee meeting yesterday and it did not disappoint in providing some fireworks.  The Federal Reserve kept short term rates unchanged near zero but hinted at raising interest rates in the final meeting in December.  In their statement, they cited becoming less concerned in recent weeks about the turbulence in financial markets and expressed indifference towards ambiguous overseas economic developments.  They also pointed to solid growth rates in domestic business investment / consumer spending and improvements in housing as positive changes that may sway policy.

Gold had already been on a two week decline and yesterday’s FOMC accelerated the downward pressure.  Gold was moving higher yesterday and completely reversed course in dramatic fashion post-FOMC.  It collapsed through previous support at $1,160 and finished near the lows of the day.  Today was a further continuation of liquidation for the yellow metal and the next major area of support is the convergence of the 50 and 100 day moving averages around $1,140.  Silver has surprisingly held up better than gold recently and its 200 day moving average has acted as a point of gravitation over the past three weeks.