Gold and Silver Fall Slightly Before Fed Day

From Chris Mullen at GoldSeek.com...

Gold traded
mostly slightly lower in Asia before it rebounded and saw small gains in London
above $674, but it then slowly and steadily fell off in morning New York trade
to as low as $668.50 ahead of a rebound in the last hour of trade that left it
with a loss of just 0.19%.  Silver dropped
to as low as $12.91 before it also rebounded in afternoon trade, but it still
ended with a loss of 0.92%.

Euro gold
fell to about €487, platinum gained $5 to $1,292, palladium lost $1 to $361,
and copper rose roughly 4 cents to about $3.58. 

Gold and
silver equities fell over 3% by late morning, but they then rebounded
throughout most of afternoon trade and ended with less than 2% losses. 

There
were no major economic reports today. 
Tomorrow at 8:30AM EST brings the preliminary reading for second quarter
Productivity expected at 2.0%.  At 2:15PM
is the FOMC policy statement that is expected to keep interest rates unchanged,
but all will be paying attention to the fed’s statement that may comment on
credit concerns recently impacting the markets. 
Finally at 3PM tomorrow is Consumer Credit for June expected at $6.0
billion.

Oil fell
markedly on profit taking and worries that slowing economic growth will reduce
demand.

The U.S.
dollar index fell to a 15 year low and briefly dropped under the 80.00 level in
early trade on worries over U.S.
economic growth, but it rebounded to find a slight gain by the close as traders
positioned themselves ahead of tomorrow’s fed meeting. 

Treasuries
fell slightly as interest rates rose in reaction to an impressive rebound in the
Dow, Nasdaq, and S&P that was fueled by bargain hunting after last week’s
late sell off.