Gold leveled off after Thursday's long drop in the wake of comments by the Federal Reserve pushing off consideration of additional stimulus.
In early trading gold was higher by $0.10 to $1,588.48 and silver was off $0.19 to $28.85. That brings the silver/gold ratio down to 55. The bloodbath yesterday puts gold on track for the largest weekly loss in a month, though prices are firming up quickly today.
If it’s any consolation, your 401(k) got it a lot worse with the DJIA dropping 1.96 percent, the S&P lost 2.23 percent and the NASDAQ was set back 2.44 percent. Yesterday’s jaw-dropping decline was brought on by the sudden realization that with $6 trillion in new money already on the books, the Fed may not have any ammunition left to pull the world out of the current economic slump.
More bad news trailed in from the housing front when sales of previously owned homes dropped sharply in May. While existing home sales were higher than last year, that’s like saying they were a lighter shade of pitch black with housing market still dragging 6.6 months of inventory on the books and foreclosures still accounting for 25 percent of sales. The good news for the housing market is that prices are bouncing off the bottom and trending higher.