Gold on the Down Slide
It's not April Fool's Day, it's May Day! But don't panic yet. Precious metals may still rebound and if you expect this, then now would be a good time to buy.
After the Federal Reserve again lowered interest rates a quarter percent yesterday afternoon gold had a flurry of buying which seemed to strengthen it's hold near $875. This morning however, major selling has driven the most watched of the precious metals down near the $850 level.
Silver is nearing $16.50, with platinum near $1875 and palladium near $400. All are on the decline, with inflation worries hushed for the moment.
The dollar strengthened agianst the Euro to about $1.55, in the wake of this last interest rate cut. The fed is indicating that they will now hold off on any further cuts, which seems a wise choice. Gold futures are trading normally in light of these factors, so we may soon see another stable plane approaching for precious metals. But the potential for a resumption of the bull market still looms in everyones mind.