Precious Metals Drop Again On Strong American Dollar
Thursday October 30, 2014 8:21 AM
(Kitco News) - Gold prices are lower and hit a three-week low in early U.S. trading Wednesday. The precious metals are feeling the bearish effects of rally in the U.S. dollar index that was prompted by a hawkish FOMC statement Wednesday afternoon. Silver futures prices hit a four-year low overnight. December Comex gold was last down $21.60 at $1,203.30 an ounce. Spot gold was last quoted down $8.30 at $1,203.75. December Comex silver last traded down $0.594 at $16.67 an ounce.
The market place is still digesting Wednesday afternoon’s FOMC statement that was deemed surprisingly hawkish on U.S. monetary policy. The Fed ended its monthly bond-buying program (quantitative easing), which was expected. However, the FOMC statement emphasized the improving U.S. economy, which led many to believe U.S. interest rates will be raised in 2015. The majority of traders and investors were looking for a dovish lean from the FOMC statement. The U.S. dollar index has posted a solid rally in the wake of the FOMC meeting and hit a three-week high overnight. The greenback is hovering near a four-year high. Meantime, the Euro currency and gold prices slumped on the FOMC statement. U.S. stock indexes sold off a bit on the FOMC news Wednesday, and were under modest pressure in early electronic trading Thursday.
