Updates gold prices after FOMC announcement
NEW YORK (
pop as the Fed keeps interest rates unchanged.
meeting, rates remain steady between 0-.25%. The Fed reiterated its pledge to keep interest rates low for an extended period of time putting
worries on the back burner.
Inflation fears shook markets in trading Tuesday after the
1.8% in November. During times of inflation, the U.S. dollar loses value and investors buy
gold as an alternative asset
buoying prices. The longer the Fed leaves rates unchanged the bigger the likelihood of inflation is down the road.
Analysts expect gold to stay in a tight range of $1,110 to $1,140 for the end of the year as profit taking and bargain hunting restrict prices. "I think we're seeing light volume in the market as a start", says Will Rhind, head of U.S. operations at ETF Securities. "Expect to see more concentration on inflation numbers over the next year as people look for any signs of consumer prices in the real economy."
was slipping .12% to $76.82 and inversely gold prices were up $16 to $1,139 at the Comex division at the New York Mercantile Exchange. Gold deliver for February has traded as high as $1,140.60 and as low as $1,122.40.
were rising 30 cents to $17.75 while copper was up 6 cents to $3.20.
Mining stocks, a more leveraged way to
, were finding some strength.
were both higher trading at $40.24 and $51.08 respectively. Shares of
Freeport McMoran Copper and Gold
were rising 1.72% to $79.42 while
was up 1.59% to $12.19.
, contributors L.A. Little's
, was rising 2.65% to $82.14.
was higher by 4% to $13.71 after
increased it price target on the stock from $15 to $16. However, the stock was downgraded from a buy to hold.
SPDR Gold Shares
were rising slightly to $111.49. Volume has been in slow decline this week as the holiday season approaches.
Written by Alix Steel in New York