Since 1978 the Federal Reserve of Kansas City has been sponsoring an annual economic symposium. Central bankers and finance ministers from around the world attend the symposium to focus upon critical economic issues. Former Federal Reserve Chairman Ben Bernanke moved the venue to Jackson Hole Wyoming in 1981.

Although the recent price decline in both gold and silver seems to be slowing down, it is evident from today’s price action that the potential for more downside in both assets still exists.

As far as gold and silver go, typically they run in tandem, with both precious metals moving higher, or lower during a trading day. While there can be major differences in the percentage gains when both metals move higher, or the percentage drawdown’s when they move lower, for the most part they run in the same direction.

Both gold and silver experienced a tremendous price decline in trading today. Gold futures basis the most active December contract lost $78.90, a total decline of 3.92%, and is currently fixed at $1934.20. Silver had a larger percentage gain giving up 4.77% which is a decline of $1.34, with the September futures contract currently fixed at $26.735.

The Federal Reserve has initiated an unprecedented level of quantitative easing. In essence the Fed has stated that they will do whatever it takes, for as long as it takes to effectively produce economic stability. Which in turn will lead to a recovery that is as strong as possible, thereby limiting any lasting damage.

Any real correction that many traders were anticipating might have come and gone, with market participants buying any reasonable dip in pricing. Last week’s single day decline of $117 seems to be the final cap on a shallow correction which resulted in gold retracing approximately 23% before finding support.

The first signs that the incredible rally in both gold and silver were entering a corrective phase occurred a week ago on Friday. Since the middle of March gold had gained approximately $600, and silver almost tripled in price. This rally was fueled by the Federal Reserve along with other central banks having an extremely accommodative monetary policy and interest rates near zero.

Following the opening bell signaling the beginning of trading for both gold and silver in New York prices saw a slight rise. However, these gains were unsustainable as prices went south leading to losses in both metals. Early morning gains followed yesterday’s dramatic selloff in both precious metals. The immediate uptick was in response to U.S.

Both gold and silver pricing plummeted as they were in a virtual freefall from the recent new all-time record highs, in the case of gold, and the near tripling in price of silver since mid-March. As of 4:40 PM EDT gold futures basis the most active December contract is currently fixed at $1918.10, after trading down by $121.60 today, or a net drawdown of 5.97%.

Both physical gold and gold futures effectively found strong support above $2000 an ounce. Physical gold closed off by approximately $9.40 and is currently bid at $2026. Concurrently gold futures, basis the most active December 2020 contract gained $8.00 and is currently fixed at $2036.