Silver shines but gold turns pale
It was mixed finish for precious metals on Wednesday, 28 January 2015 at Comex. Gold prices fell on Wednesday as the U.S. central bank reiterated its commitment to raising interest rates some time in the latter part of the year but the precious metal pared some of its earlier losses after the Federal Reserve's policy statement. Silver rose.
March gold lost $6.50/oz to $1285.60/oz, while Mar silver rose $0.01 to $18.09/oz on Wednesday.
The Fed described U.S. economic growth as 'solid' while categorizing job growth as 'strong.' The central bank did not spend much time discussing overseas developments, which could help explain some of the selling that developed after the statement was released. Furthermore, the FOMC showed little concern over low inflation, saying that while the price level is expected to decline in the near term, a gradual return to 2.0% should follow once the 'transitory effects of lower energy prices and other factors dissipate.'
Economic data was limited to the weekly MBA Mortgage Index, which fell 3.2% to follow the prior week's surge of 16.1%.
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