Gold, as well as silver, began to sell off slightly at the start of trading yesterday on Monday morning in Australia. However, by the time trading had opened in Hong Kong and moved into London, the selling became more pronounced as the price declined at a steeper pace.

I say, "High," you say, "Low." You say, "Why?" And I say, "I don't know."  I don't know why you say, "Good buy," I say, "Heck no."

Satirized from Hello Goodbye by: John Lennon / Paul McCartney

A strong U.S. dollar has tempered any real upside move in the precious metals markets today. Although traders are currently bidding up the all the precious metals, only silver, platinum and palladium have closed with positive gains.

Gold is trading modestly higher today, with the most active December’s futures contract currently trading up $3.20 and fixed at $1221.50. Today’s net gain is a direct result of fractional buying as well as a modestly lower U.S. dollar.

Interesting but muted action has been present in gold prices recently. In fact, over the last six trading days, gold futures (basis the most active December Comex contract) have traded in a range containing a lower high than the high achieved on the previous day.

Gold futures continue to trade under pressure today, with the most active December Comex contract currently down $7.60 and fixed at $1,215.60, a net decline of 0.62%.

Although gold futures finished fractionally higher on the day, it has closed lower on the week. This now marks the fourth consecutive week in which gold futures have closed lower and below the open on Monday.

The fact of the matter is that most market participants are acutely aware of the fact that the strategy of quantitative easing has ended and no longer guides the Federal Reserve’s monetary policy.

In a statement released following the conclusion of this month’s FOMC meeting, the Fed announced that Fed funds would remain unchanged. “In view of realized and expected labor market conditions and inflation, the committee decided to maintain the target range for the federal funds rate at 1-3/4 to 2 percent.”

The Federal Open Market Committee (FOMC) began its two-day meeting today which is scheduled to end tomorrow afternoon. Following the conclusion of this month’s FOMC meeting will be a statement in which a policy decision will be announced.