NEW YORK ( TheStreet ) -- Gold and silver prices popped Wednesday on a broad commodity rally. Gold for June delivery added $15.80 to close at $1,495.80 at the Comex division of the New York Mercantile Exchange. The gold price Wednesday has traded as high as $1,499.70 and as low as $1,484.60. The spot gold price was adding $11, according to Kitco's gold index. Silver prices rallied $1.60 to close at $35.09 an ounce. The U.S. dollar index was slightly higher at $75.43.
Some viewed the rally in the metals as a delayed reaction to Tuesday's higher-than-expected inflation reading out of the U.K., which came in hot at 4.5%. "Hopefully this is a bit of stability in the market," says Will Rhind, head of U.S. operations for ETF Securities." Rhind also thinks that the gold market has priced in the eventual end of the Federal Reserve's $600 billion bond buying program and that speculators are out of the market. "We haven't seen any redemptions in our ETFS Physical Gold ( SGOL) or in our ETFS Physical Silver ( SIVR) or in any of our other metal products in the last week and that tells me that things have calmed down a little bit," argues Rhind. Silver and gold were relatively unchanged after the Federal Reserve released its minutes from its latest FOMC meeting in late April. The release indicated that while there was talk of monetary tightening, a "normalization," the 'when' remains a key issues.
The Fed said it would continue to monitor inflation and employment and would stop reinvesting payments of principal on agency securities first, then on Treasury securities. No time line was given. The Fed would only consider another round of quantitative easing if the economic outlook changed drastically. "Metals markets are having a mixed reaction after this," says Phil Streible, senior market strategist at Lind-Waldock, "with gold unable to break through $1,500."