Gold, Silver Take a Dive as No QE3 In Sight

The gold futures took a huge dive earlier today after the Fed chairman, Ben Bernanke's, congressional testimony. Bernanke did not give any signals that the Fed would be considering any new easing to accelerate the economic growth in the United States, which sent the U.S. dollar and PowerShares DB US Dollar Index Bullish ETF

higher intraday. The diminishing hopes of new easing also sent the gold futures lower and the SPDR Gold Trust ETF

is down 5.16% on the session. Also the silver futures sunk nearly 7% on the session and the related ETF iShares Silver Trust ETF

is trading $2.27 lower on the session at $33.51. Precious metals, such as gold and silver have been seen as a safe haven against inflation that could be caused by the Fed's loose monetary policies and increase in money supply. The recent positive economic data has made it less likely that the central bank will announce any new measures to inject more money in the U.S. economy. Overall, the U.S. dollar is expected to perform well if the current trend of no additional easing continues. Also, the improving economy could consumer discretionary stocks and Consumer Discretionary SPDR ETF

.