Gold Prices Get Fed, ECB Bump (Update 1)
Updated from 12:22 p.m. ET with settlement prices
COMEX Gold for June delivery rose $21.40 to $1,467.60 an ounce. The gold price traded as high as $1,473.30 and as low as $1,448.10 an ounce, while the spot price was adding $9.80, according to Kitco's gold index.
The ECB cut its benchmark rate by 25 basis points to 0.5% -- a record low -- from 0.75%, which was the baseline rate since July 2012.The Fed on Wednesday said in its latest policy-making statement that the central bank is prepared to increase or reduce monetary stimulus as needed. The statement marked a shift among central bankers away from the decision to begin scaling back on its current purchasing programs. "All this money flowing into the world economy augers for inflationary worries, it also is an underlying bullish factor for the raw commodities sector, including the precious metals," Jim Wyckoff, senior metals analyst at Kitco.com, said in an interview. Silver prices for July delivery increased 49 cents to $23.83 an ounce, while the U.S. dollar index was popping 0.72% to $82.23 as the euro weakened against the greenback following the ECB announcement. "If the economy were moving ahead vigorously, if jobs were increasing, the unemployment rate were falling and production were increasing, then the conversation at the
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