Prices stay upbeat following Fed's comments
Bullion prices ended marginally higher at Comex on Wednesday, 18 June 2014. Gold prices gained slightly on Wednesday after the Federal Reserve said it expects to hike short-term interest rates a little faster than previously forecast.
Gold for August delivery ended up 70 cents, or 0.1%, at $1,272.70 an ounce ahead of the Fed statement.
On Wednesday, July silver gained 5 cents to settle at $19.78 an ounce.
The Fed reiterated its commitment to the current level of interest rates, saying rates are likely to remain low for a considerable time after quantitative easing ends. Furthermore, the FOMC released its economic projections, but those were not too different from the prior forecast either. According to the projections, the Fed expects the jobless rate to be between 6.0% and 6.1% at the end of the year after calling for a rate between 6.1% and 6.3% in its last set of projections.
During the press conference, Fed Chair Yellen justified the taper by saying the economy is on track to meet its objectives and that the GDP contraction observed in the first quarter was an aberration. Ms. Yellen also noted that inflation remains below the 2.0% objective.
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