Gold Spot Price Open: $1,273

Gold Spot Price Close: $1,258

Change in Gold Spot Price: -$15

Silver Spot Price Open: $20.03

Silver Spot Price Close: $19.68

Change in Silver Spot Price: -$0.35

Gold and silver ended the day on a somber note after hitting 9-week highs in the early parts of Monday. When all was said and done, gold lost about fifteen dollars while silver declined to the tune of roughly 35 cents.

It was clear today that the marketplace was suffering from a bit of anxiety as periphery currencies declined somewhat dramatically. Currencies like the Argentine peso, Indian rupee, and Turkish lira were all feeling selling pressures today as were equities in both Europe and Asia. Though stocks fared decently well in the US on Monday, European and Asian equity markets were simply following the footsteps of US stocks last Friday when they sold off at a considerable rate.

Market analysts are citing an overall fear of a liquidity crunch as the reason behind periphery currencies selling off today. China is currently dealing with a bit of a liquidity crisis and because of that world investors are not taking any chances and thus selling off the currencies that are beginning to look more like liabilities. In response to this renewed risk-averse attitude exhibited by world traders, gold and silver are seeing safe-haven demand begin to rise.

If the Fed does, in fact, decided to taper at tomorrow and Wednesday’s meeting, the fear of a worldwide liquidity crunch may soon make the transition from nightmare to reality. As of now it is anticipated that the Fed will reduce its monthly bond-buying by another $10 billion as an outcome of this week’s meeting. Even though stocks adjusted to the first batch of tapering quite well, some analysts are unconvinced that such will be the case the second time around. As more easy money flees the world marketplace investors are more readily cashing in on stock market profits realized over the past few months and subsequently seeking out safer places to allocate their investing funds. Though it may be too soon to say for sure, gold and silver stand the chance of benefiting greatly from another Federal Reserve decision to taper QE.