NEW YORK (TheStreet) -- The prices of gold and silver haven't performed well during the past several weeks. Their recovery earlier this week didn't put much of a dent in gold and silver's big losses of recent weeks.
What is next for gold and silver? Let's analyze the latest news that may affect the metals.
The fall in silver and gold prices are reflected in the decline in demand for leading precious metals ETFs, including SPDR Gold (GLD) and iShares Silver Trust (SLV). During December, the SPDR Gold's holdings fell by 0.9%; iShares Silver Trust's silver holdings, by 0.5%. The upcoming FOMC meeting could influence gold and silver investors.
FOMC's December Meeting
The FOMC will convene for the last time this year on Dec. 17-18. This will also be the last meeting with Ben Bernanke completing his term as chairman of the Federal Reserve.
Will the FOMC announce the tapering of its current $85 billion-a-month long-term asset purchase program in this meeting? If such an announcement were to be made, it could further drag down the prices of gold and silver. Moreover, this might rekindle the speculations that the Fed may raise its interest rate from its currently low rate, which was set back at the end of 2008.
Keep in mind, the Federal Reserve announced in late 2012 it would keep its interest rate low until mid-2015. Back in June 2013, however, the Fed stated it will maintain the interest rate low as long as: