Strong dollar pressured prices
Precious metals traded lower on Wednesday, 21 August 2013 as investors awaited the 14:00 ET release of the FOMC Minutes and as the stronger dollar pressured prices.
Comex gold for December delivery fell to a session low of $1361.10 per ounce but erased most of the earlier losses, settling 0.1% lower at $1370.00 per ounce
Sep silver brushed a session low of $22.88 per ounce and eventually settled at $22.97 per ounce, or 0.3% lower.
Although the minutes from the July meeting offered few changes from prior statements, they did indicate broad support for Chairman Bernanke's timeline, which would likely call for tapering as early as September. However, this was coupled with cautious comments regarding the labor market as the minutes noted, "The June employment report showed continued solid gains in payrolls. Nonetheless, the unemployment rate remained elevated, and the continuing low readings on the participation rate and the employment-to-population ratio, together with a high incidence of workers being employed part time for economic reasons, were generally seen as indicating that overall labor market conditions remained weak."
Overall, the minutes did not provide a clear-cut signal regarding the Fed's tapering schedule and the mixed reaction across markets suggests a certain level of uncertainty remains present.
In the currency market, the dollar index, which weighs the strength of the dollar against a basket of six other currencies, rose by 0.24%.
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