Gold snaps a three-session winning streak
Bullion prices ended the U.S. day session moderately lower on Wednesday, 07 January 2015 at Comex. A sharply higher U.S. dollar index was also a negative outside market force working against the precious metals. Gold snapped a three-session winning streak on Wednesday as a rebound in equities lured investors away.
Gold for February delivery fell $8.70, or 0.7%, to $1,210.70 an ounce.
March silver shed 9 cents, or 0.5%, to $16.54 an ounce.
The afternoon release of the minutes from the latest meeting of the Federal Reserve's Open Market Committee showed the members are considering an interest rate hike, but are worried about elements that could thwart the modest U.S. economic recovery. The market place deemed the FOMC minutes as a non-event, and gold and silver prices showed little reaction.
The U.S. dollar index continues on its bullish rampage, hitting another 10-year high overnight as prices traded sharply higher on the day. The Euro currency slumped to a nine-year low versus the greenback on Wednesday.
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Crude oil prices fell to another 5.5-year low of $46.83 a barrel overnight, basis nearby Nymex futures.
In overnight news, consumer price inflation in the European Union fell by 0.2% in December, on an annual basis, which is the first decline on an annual basis since 2009. This news further advances notion the European Central Bank will implement quantitative easing of its monetary policy sooner rather than later. The ECB holds its next regular meeting on January 22.
Germany held a note auction (Schatz) on Wednesday that fetched a record low and average yield of negative .011%. Demand was termed strong. This news is another clue of the keener anxiety in the market place at present, regarding the overall financial and economic health of the European Union.
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