Gold Firmer But Off Daily Highs, In Wake of FOMC Statement

(Kitco News) - Gold prices were modestly higher in early afternoon U.S. trading Wednesday, following the much-anticipated FOMC statement that was deemed mostly neutral. The precious metals markets drew support during the session from bullish outside markets that included higher crude oil prices and a lower U.S. dollar index. June Comex gold was last up $3.00 at $1,246.00 an ounce. July Comex silver was last up $0.051 at $17.21 an ounce.

Traders and investors are digesting the results of the meeting of the U.S. Federal Open Market Committee (FOMC) that began Tuesday morning and ended early Wednesday afternoon with a statement. There were no changes in U.S. monetary policy, as expected.
And the statement provided just scant clues that would favor the dovish or hawkish monetary policy camps.

The Bank of Japan holds its regular monetary policy meeting on Thursday. The BOJ is battling slow economic growth, price deflation and an appreciating yen on the world foreign exchange market. Many view the BOJ meeting this week as just as market-sensitive as the just-concluded FOMC meeting.

Nymex crude oil prices were solidly higher and hit a nearly five-month high Wednessday. Nymex crude is hovering around $45.00 a barrel. The other key “outside market” saw the U.S. dollar index slightly lower in afternoon trading and still mired in a near-term price downtrend.

World stock markets were subdued and did not stray too far from steady levels Wednesday. U.S. stock indexes were weaker after disappointing earnings results from Twitter and Apple late Tuesday.

Courtesy: Kitco News