Gold and silver prices were slightly higher Wednesday as markets awaited the Federal Reserve's rate decision and Ben Bernanke's first press conference.
Gold prices for June were adding $2.70 to $1,506.80 an ounce at the Comex division of the New York Mercantile Exchange. Gold prices have stayed in a tight range from $1,504 to $1,503 an ounce, while the spot gold price was flat, according to Kitco's gold index. The U.S. dollar index was moving slightly higher at $73.77.
Silver prices were adding $0.14 to $45.19 an ounce.
The Fed will make or break the commodities today with its interest rate policy decision expected at 12:30 p.m. EST and Ben Bernanke answering press questions at 2:15. No change in policy is expected but the language is the key.
Will inflation be longer term leading to a sooner-than-expected rate hike and how will the Fed exit quantitative easing round two in June? Will it be a hard landing or will its balance sheet stay the same keeping a lot of money in the system. The Fed has pumped more than $2 trillion since the start of its cheap and easy monetary policy.
A loose money policy winds up hurting the dollar as more greenbacks in circulation make them worth less, lifting gold and silver as a perceived safer form of money. Gold and silver don't always react inversely to the dollar, but today they will.
Gold prices for June were adding $2.70 to $1,506.80 an ounce at the Comex division of the New York Mercantile Exchange. Gold prices have stayed in a tight range from $1,504 to $1,503 an ounce, while the spot gold price was flat, according to Kitco's gold index. The U.S. dollar index was moving slightly higher at $73.77.
Silver prices were adding $0.14 to $45.19 an ounce.
The Fed will make or break the commodities today with its interest rate policy decision expected at 12:30 p.m. EST and Ben Bernanke answering press questions at 2:15. No change in policy is expected but the language is the key.
Will inflation be longer term leading to a sooner-than-expected rate hike and how will the Fed exit quantitative easing round two in June? Will it be a hard landing or will its balance sheet stay the same keeping a lot of money in the system. The Fed has pumped more than $2 trillion since the start of its cheap and easy monetary policy.
A loose money policy winds up hurting the dollar as more greenbacks in circulation make them worth less, lifting gold and silver as a perceived safer form of money. Gold and silver don't always react inversely to the dollar, but today they will.
