This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Gold Falls After Fed Offers No New Economic Steps


Gold prices dropped slightly Wednesday after the Federal Reserve held off on new measures to stimulate economic growth.

The Fed predicted that economic growth would improve gradually. The central bank maintained its plan to keep a key short-term interest rate near zero through late 2014 but offered no hint that it would make more bond purchases after its current program ends in June.

Gold for June delivery fell $1.50 to finish at $1,642.30 an ounce.

Gold prices have been supported for months in part by the Fed's bond-buying programs. The bank bought Treasury bonds and mortgage-backed securities to push down long-term interest rates and stimulate borrowing and spending.

By keeping interest rates low, the Fed's programs pressured the dollar, which weakened against other currencies. Gold and other commodities are priced in dollars, so a weaker dollar makes them more of a bargain for traders who use other currencies.

Without additional bond-buying programs, gold likely will remain under some light pressure, said Dave Meger, vice president of metals trading at Vision Financial Markets. Investors may opt to put more money into other assets such as stocks and bonds.

Other metals were mixed. May silver fell 39 cents to end at $30.356 per ounce, May copper rose 2.75 cents to $3.70 per pound, July platinum fell 80 cents to $1,547.30 an ounce and June palladium declined $10.70 to $655.10 per ounce.

Soybean prices hovered at levels not seen since July 2008 on expectations that global supplies will remain tight while demand is strong, particularly in China.

The long-term outlook has drawn more money into soybean contracts. Traders are expecting the price will continue to climb, Telvent DTN analyst Darin Newsom said.

In July contracts, soybeans rose 11 cents to end at $14.76 per bushel, wheat fell 6 cents to $6.265 per bushel and corn dropped 7 cents to $6.01 per bushel.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs