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Fed Minutes Have Positive Impact on Precious Metals

July 9, 2014 at 21:20 by Vladimir Vyun

Gold jumped today after the Federal Reserve released minutes of its June policy meeting. Other precious metals followed, though their gains were not as big. It was expected that the Fed minutes would impact the market in a significant way, but it was not certain would this impact be good or bad. It turned out that the minutes were positive for the metal market.

US policy makers were keen on explaining that monetary policy depends on economic performance strongly, and there are still substantial risks for growth. The thing is that market participants considered economic recovery and subsequent monetary tightening a certain fact, and they did not welcome the dovish comments (though such words were in line with what Fed members were speaking before). Markets reacted to the news by pushing the dollar down, increasing value of dollar-priced commodities as a result.

August futures for delivery of gold jumped as much as 1.00 percent to $1,329.60 per troy ounce as of 21:14 GMT on COMEX today. September silver advanced 0.82 percent to $21.19 per ounce. Spot price for platinum gained 0.56 percent to $1,505.19 per ounce, and palladium went up 0.06 percent to $873.36 per ounce.

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