Gold prices rose to 1-1/2-week highs on Wednesday, extending gains after the U.S. Federal Reserve held interest rates unchanged but sent a strong signal for monetary policy tightening before the end of 2016
Gold and silver price were trading solidly higher in afternoon U.S. trading Wednesday, following bullishly construed conclusions to Bank of Japan and U.S. Federal Reserve monetary policy meetings. December Comex gold was last up $20.80 an ounce at $1,338.70. December Comex silver was last up $0.628 at $19.90 an ounce.
The key “outside markets” were bullish for the precious metals Wednesday. Nymex crude oil prices were higher on short covering after hitting a six-week low Tuesday. However, crude oil prices remain in a near-term downtrend. The other outside market on saw the U.S. dollar index trading lower, amid recent choppy trading action on the charts.
"Overall, while the statement and dissents were more hawkish than expected, the dovishness contained in the SEP (Summary of Economic Projections) appear to be driving markets," said Royce Mendes, director and senior economist at CIBC Capital Markets in Toronto, adding that the bank expects a rate hike in December.
Reference: KITCO, Reuters
Thai
Eng