On the heels of today’s FOMC announcement metals took a bit of a dip. However, it wasn’t as bad as some would make it out to be. For instance, silver still isn’t down to yesterday’s low. Gold is off yesterday’s close by only $6.
What’s our point? Mainly, to help readers adjust their mindset to ignore the sensationalism we see in the news. Check out some of these headlines and judge for yourself. As a note, realize that the low of the day, just under $1700, came at just about 2:00 PM, fifteen minutes before the FOMC announcement. Gold was above $1700 the rest of the day, but never significantly so.
Gold falls to $1,700/oz as Fed offers few surprises
Gold fell on Wednesday to just above $1,700 an ounce, after the U.S. Federal Reserve stuck to its plan to keep stimulating growth until the job market improves but made few surprises in its policy statement.
Comex Gold Futures Pare Loss Slightly After FOMC Statement
Gold futures pared their losses slightly Wednesday after the Federal Open Market Committee signaled it is staying the course with loose monetary policy, as had been expected.
As of 3:10 p.m. EDT, gold for December delivery was $6.10 lower at $1,703.50 per ounce on the Comex division of the New York Mercantile Exchange. December silver was nearly steady, down 0.003 cent to $31.79.
The metals had settled at $1,701.60 and $32.62 after the open-outcry session. Gold also dipped below $1,700 for the first time since Sept. 7.
PRECIOUS METALS: Gold Briefly Roiled by FOMC Minutes
Gold futures weathered several minutes of volatile trading in the wake of the Federal Reserve’s policy statement and pared earlier losses, though futures remain near seven-week lows.
Gold prices jumped $7 to $1,709.00 an ounce from $1,702.40 in the minute of trading that the FOMC minutes were released. But prices touched $1,698.70 just two minutes later, as traders continued to sift through the policy statement.
Gold and Silver Bounce After FOMC Statement
On Wednesday, gold (NYSEARCA:GLD ) futures for December delivery fell 7.80 to settle at $1,701.60 per ounce, while silver (NYSEARCA:SLV ) dropped 17 cents to close at $31.62.
Both precious metals reached intra-day lows ahead of the Federal Open Market Committee minutes, but rebounded after the statement was released. The central bank is still more than willing to keep its foot on the monetary gas pedal.
Post-FOMC Market Update: Gold Up, Stocks Down (Just)
The market had a small conniption immediately after the FOMC minutes were released as algos were quickly switched off but since then little has moved. The main ‘theme’ if any is one of a lower USD, higher Gold, and lower stocks with Treasuries and Oil flat (for now)…
A pretty interesting mix? Generally speaking, the responsible reporters pointed out that gold hit a low just before the FOMC meeting and are down during NY trading hours. It’s nothing more and nothing less than that.
We’ve been watching the charts and see signs that this current contraction may be ending. Unless something comes up, we’ll be revisiting the weekly and daily charts this week. For now, investors may want to look at this dip as a buying opportunity.
For your prosperity,
J. Keith Johnson
The Gold Informant
