From Chris Mullen at GoldSeek.com...
mostly slightly lower in Asia and London before
it furthered its losses in early New
York trade to as low as $665.80 by about 9:30AM EST,
but it then rallied back higher for most of the rest of trade and ended with a
loss of just 0.07%. Silver dropped to
$12.88 in early morning New York
trade, but it then shot higher between about 9:30 and 11AM, remained near its
high into the close, and ended with a gain of 0.62%. At the time of writing, both metals are
trading slightly higher from their close in reaction to the fed’s statement.
rose over €488, platinum lost $11 to $1,281, palladium lost $3 to $358, and
copper rose roughly 7 cents to about $3.65.
silver equities fell about 2% at the open, but they then rallied back higher for
most of the rest of trade and ended mixed and near unchanged.
came in less than expected and raised inflation worries as a “measure of wages
and benefits increased
at a 2.1 percent pace, more than anticipated, and climbed 4.5 percent in
the 12 months ended in June.”
statement noted volatility in financial markets in recent weeks, a housing market
correction still ongoing, an economy that continued to expand at a moderate
pace, that downside risks to growth have increased somewhat, and that readings
on core inflation improved moderately in recent months. However, a sustained inflation moderation easing
has yet to take place. Ultimately, the
fed’s predominant policy concern remains that inflation “will fail to moderate
as expected” and while they did add some comments on risks to economic growth, they
did not make a big change towards a more neutral stance of leaving the door
open for a possible interest rate cut soon as many had hoped for.
slightly higher on refinery problems after early losses on a mixed EIA demand
forecast as traders also prepared for tomorrow’s inventory reports.
dollar index bounced higher from yesterday’s new 15 year low before the fed’s
statement and remained slightly higher after the fed as they did not imply an
interest rate cut soon, but gains did moderate as the fed did recognize some
ended near unchanged on the fed’s mixed statement.
Nasdaq, and S&P opened markedly lower before they rallied to find slight
gains before the fed’s statement, but they dropped back near their lows soon
after the fed’s statement as the fed did not move their stance closer to a
potential ease in interest rates as most had hoped. However, all three indices rallied back
higher to find moderate gains by the close as the fed at least acknowledge
recent volatility and risks to economic growth.