Commodity Blog

Commodity news, technical and fundamental analysis, market data on precious metals, energies, industrial metals, and soft commodities


FOMC Hurts Precious Metals, Silver Avoids Losses

August 20, 2014 at 21:59 by Vladimir Vyun

The most important event today was the release of the Federal Reserve minutes. The minutes of the latest (July 29–30) policy meeting revealed that US policy makers are more hawkish than it has been considered previously. The lines that caught e most of traders’ attention were:

Many participants noted that if convergence toward the Committee’s objectives occurred more quickly than expected, it might become appropriate to begin removing monetary policy accommodation sooner than they currently anticipated. Indeed, some participants viewed the actual and expected progress toward the Committee’s goals as sufficient to call for a relatively prompt move toward reducing policy accommodation to avoid overshooting the Committee’s unemployment and inflation objectives over the medium term.

Such wording was interpreted by market participants as a sign that the Fed may start raising interest rates sooner. As it usually happens, such speculations weakened precious metals. Gold dropped, as well as platinum and palladium, yet silver was a notable exception, rising instead.

December futures for delivery of silver lost 0.32 percent to $1,292.50 per troy ounce as of 21:49 GMT on COMEX today. Meanwhile, contract for silver added 0.22 percent to $19.46 per ounce. Spot price for platinum fell 0.07 percent to $1,426.50 per ounce, and palladium declined 0.06 percent to $866.85 per ounce.

If you have any questions and comments on the commodities today, use the form below to reply.

Leave a Reply