After trading as low as $33.50 overnight, silver is again knocking on the door of $34, capped at $33.95 twice so far in NY trading. With tomorrow's FOMC announcement, silver's 2% sell-off overnight is no surprise.
The Fed does not seem to be indicating that further explicit (behind the scenes it continues unabated) QE is imminent, but an official announcement will have to be made in the next month or two to allow the effects to work their way through the system before the presidential election in November.
QE to Infinity AND BEYOND!!! is continuing, and will increase regardless of the official FOMC statements however. Look for the Fed's swap lines with the ECB and European banks to exponentially increase in the aftermath of the ISDA's decision Friday that Greece has defaulted and CDS's will be required to pay out. This has massively bullish implications for gold and silver long-term, but short term massive price volatility could be seen in either direction.
The capping action at $1700 continues for gold, as every approach to or through $1700 is met by a quick trip down the mine shaft. Gold currently is trading like a submerged beach ball, continually wanting to pop higher once the suppressing force momentarily relents.