Gold prices were trading only modestly lower in afternoon dealings Wednesday, after selling off moderately following an FOMC statement that was initially deemed hawkish on U.S. monetary policy. Gold prices rebounded from lower levels to trade just a bit lower as the marketplace began to reckon the latest FOMC minutes may just be more of the same Fed rhetoric and not much has really changed. December Comex gold was last down $2.00 an ounce at $1,354.80. September Comex silver was last down $0.139 at $19.735 an ounce.
The FOMC minutes said a Federal Reserve interest rate hike soon is warranted, but with contingencies. In other words, the Fed might raise interest rates this year, but it also might not—at least that’s the way the marketplace reads today’s report.
The U.S. dollar index was trading firmer before the FOMC minutes but then sold off slightly after the minutes were released. U.S. Treasuries rallied after the FOMC report, while U.S. stock indexes were weaker following the report.
Reference: Reuters, KITCO
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