Gold News

Gold Prices Climb, Silver Up 5% As Minutes Show Fed Split

From Chris Mullen at GoldSeek.com...

Gold Prices climbed higher throughout most of world trade on Wednesday, ending near the late session high of $1499.75 with a gain of 1.03%. 

Silver Prices surged to as high as $35.515 and ended with a gain of 4.95%.

Euro Gold Prices rose to about €1049. 

Gold Mining and silver equities rose about 1% in the first half hour of trade and remained near that level for the rest of the day.

Platinum gained $5.30 to $1766.50, and copper climbed 10 cents to about $4.10.

Oil extended higher to above $100 after the Energy Information Administration reported that crude inventories were unchanged, gasoline inventories rose 100,000 barrels, and distillates fell 1.2 million barrels.

The US Dollar ended near unchanged as traders digested US Federal Reserve minutes and developments in Europe. 

Federal Reserve officials are divided about the timing of when to start to tighten monetary policy, with some officials saying that an exit might come sooner than expected while others were concerned early rate hikes would unnecessarily damp the recovery, according to the minutes of the Fed's April 26-27 meeting released on Wednesday.

Some Fed officials told their colleagues that they would only support a third round of asset purchases, known as QE3, if there was a significant change in the economic outlook. The minutes reveal that Fed officials spent a lot of time discussing how to exit from an ultra-low stance with rates stuck between 0% and 0.25% and the Fed's having more than $2.7 trillion in assets on the books.

Fed officials said the discussion was not a sign that an exit would necessarily begin soon. While there were no decisions taken, most of the FOMC members wanted to shrink the balance sheet through predictable sales of assets.

US Treasuries fell as the Dow, Nasdaq, and S&P rose on a rebound in commodities.

Among the big names making news in the market on Wednesday were Staples, Deere, Dell, Citigroup, Delphi Automotive, and Target.

Thursday at 8:30am EST brings Initial Jobless Claims for 5/14 expected at 420,000 and at 10AM is the Philadelphia Fed for May expected at 18.0, Existing Home Sales for April expected at 5.23 million, and Leading Economic Indicators for April expected at 0.0%.

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Chris Mullen is chief content manager of the GoldSeek family of websites, a leading source of gold news, comment and mining-stock data for private and institutional investors.

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