Gold News

Gold Prices Gain as Fed Minutes Suggest "Additional Monetary Stimulus"

Chris Mullen of with the wrap up of Tuesday's action...

Gold Prices fell as much as $7.85 to $1540.55 on Tuesday by about 7:15am EST, but then rallied back higher throughout most of New York trade in New York and ended at $1562.59 with a gain of 0.9%.  

Euro Gold Prices jumped to a new record high at almost €1116. 

Silver Prices fell to as low as $34.776 before it also rallied back higher, but it still ended at just unchanged on the day.  

Both metals are also extending higher in afterhours access trade in reaction to the release of FOMC minutes from the Federal Reserve's last meeting. – "A few members noted that, depending on how economic conditions evolve, the committee might have to consider providing additional monetary stimulus, especially if economic growth remained too slow to meaningfully reduce the unemployment rate in the medium run."

Gold and silver stocks rose about 3% by midafternoon and remained near that level for the rest of the day.

Platinum gained $14.05 to $1732.25, and copper gained a couple of cents to about $4.38.

Oil rose on a rosy demand outlook from OPEC as the US Dollar reversed early gains and ended near unchanged following the release of the Fed's minutes.

US Treasuries ended modestly higher as the Dow, Nasdaq, and S&P struggled to find gains on continued worries about the world economy, but the possibility of further stimulus from the Fed briefly gave some strength to the market.

Among the big names making news in the market today were Alcoa, Cisco, RIM, MBIA, News Corp., Citrix Systems, and PIMCO.

Wednesday at 8:30am EST brings Import and Export Prices for June and at 2pm is the Treasury Budget for June expected at -$45.0 billion.  Bernanke will also be testifying before the House Financial Services committee on Wednesday and the Senate Banking Committee on Thursday.

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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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