Gold and Silver Fall Slightly Before Fed Announcement; Gain Afterwards

Gold waffled near unchanged for most of trade in Asia before it fell back off in London to see an almost 1% loss at as low as $1190.25 in early New York trade and then stormed back higher in midday trade to almost unchanged at as high as $1199.65 by early afternoon, but it then fell back off in the last hour of trade and ended with a loss of 0.4%.  It has however, more than erased that loss in after hours access trade in reaction to the fed’s announcement.

Silver dropped to as low as $17.945 in London before it also rallied back higher in morning New York trade and saw a slight gain in early afternoon trade at $18.292, but it then fell back off in late trade and ended with a loss of 0.6%.  It has also more than erased that loss in after hours access trade in reaction to the fed’s announcement. 

Euro gold rose to about €912, platinum lost $7.20 to $1530.80, and copper fell 4 cents to about $3.31.

Gold and silver equities fell over 2% at the open before they rose to see only 1% losses by early afternoon, but they then jumped even higher following the fed’s announcement and ended near unchanged.

Treasuries added to early gains after the fed announced it will purchase government bonds with mortgage bond proceeds.

The Dow, Nasdaq, and S&P fell over 1% at the open on news of slowing imports in China that increased worries over the health of the world economy, but all three indices pared most of their losses and ended only modestly lower in reaction to the fed’s announced actions.