Gold Ends Weds Unchanged by Fed Announcement, Stocks Fall as Dollar Gains
From Chris Mullen at GoldSeek.com...
Gold steadily fell off in Asia and London on Wednesday to see a loss of $7.31 an ounce at $1005.89 a little after New York opened for business.
Gold then rallied back in the last few of hours of trade and ended unchanged on the day.
The Gold Price in Euros rose to €686 an ounce.
Silver fell as low as $16.70 a little before noon in New York, before it also climbed back higher into the close, ending with a loss of 0.2%.
Platinum lost $5.50 to $1322.50, and copper fell 5 cents to about $2.80.
Gold Mining and silver equities fell over 2% by late morning before they rallied back near unchanged shortly after the Federal Reserve's monthly announcement.
Precious metals stocks then fell back off into the close and ended more than 3% lower on the day.
The Fed held its key interest rate in the record low target range of 0.00% to 0.25%, as expected. The only noticeable change in the statement was a lack of concern about inflation that had been somewhat addressed in the previous statement.
Oil fell in early trade on continued worries over demand and then fell even further after it was announced that inventories built much more than expected. The Energy Information Administration reported that crude inventories rose 2.8 million barrels, gasoline inventories rose 5.4 million barrels, distillates rose 3.0 million barrels, and refinery utilization fell 1.3 % to 85.6%.
The US Dollar index initially erased pre-Fed gains and turned lower, but the currency then rose in late trade and ended nicely higher as a renewed round of risk aversion surfaced to encourage cash raising.
Treasuries rose after the Federal Reserve also said it will slow the rate at which it's been buying mortgage-backed securities and housing agency bonds, delaying by 3 months the end of its $1.45 trillion program.
The Dow, Nasdaq, and S&P initially climbed to new session highs following the Fed's statement, but they turned back lower and fell to new session lows by the close on worries over the sustainability of recent economic growth.
Thursday at 08:30 EST brings Initial US Jobless Claims for last week, expected at 550,000, and then at 10:00 comes the Existing Home Sales report for August, expected at 5,350,000.
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