Gold ends Thursday nearly 1% higher; Fed leaves US stocks mixed

from Chris Mullen at GoldSeek...

The gold price rose $2 in Asia on Thursday, added another $2 in London, and gained almost $4 more in early New York trade to near $650 by late morning before it fell back slightly in afternoon trade, but still ended with a gain of 0.95%.

Silver followed a similar pattern and rose near $12.50 before it also fell back off, but it still ended with a gain of 1.39%.

Euro gold prices rose over €483, platinum gained $1 to $1,274, palladium gained $6 to $366, and copper gained nearly 6 cents to about $3.48.

Gold and silver equities rose over 1% at the open, but they then steadily fell off for the rest of trade and ended mixed and near unchanged.

Comments accompanying the US Fed's unchanged interest rate at 5.25% noted that economic growth is moderate, despite the ongoing adjustment in the housing sector. The economy will likely continue to expand at a moderate pace.

Readings on core inflation have improved modestly in recent months; however a sustained moderation in inflation has yet to be shown. One notable changed in the statement was the removal of “elevated” in their description of core inflation.

Today at 12:30 GMT brings US Personal Income data for May, expected at 0.6%, plus Personal Spending expected at 0.7% and Core PCE Inflation expected at 0.1%.

At 13:45 GMT comes Chicago PMI for June, expected at 58.0, followed at 14:00 by Michigan Sentiment for June expected at 84.0. Construction Spending for May is expected to show a 0.2% rise.

In the broader markets on Thursday, oil continued to gain on supply concerns after Wednesday’s disappointing inventory report and topped $70 in morning trade for the first time since September before it pulled back. It still ended with nearly a 1% gain.

The US Dollar index remained near unchanged and US Treasuries fell on the day after the Personal Consumption Expenditures price index came in a little higher than expected at 2.4% and the Fed reiterated concerns over inflation heading forward.

The Dow, Nasdaq, and S&P remained mixed and near unchanged throughout trade as the Fed’s statement came in about as expected. Among the big names making news in the stock market were Carlyle Group, KB Home, Monsanto, Constellation Brands, and Apple.