Gold futures on the COMEX division of the New York Mercantile Exchange increased on Wednesday in anticipation of the release of the Federal Open Market Committee (FOMC) meeting minutes.
The December delivery gold contract, which was the most active, rose by 12.00 U.S. dollars, or 0.64 percent, and closed at 1,887.30 dollars per ounce.
Following the closure of the floor trading for gold, the FOMC September policy meeting minutes were published. These minutes revealed that all participants in the meeting agreed that rates should remain high for a certain period.
The minutes demonstrated that Federal Reserve officials were highly uncertain about the future direction of the economy. Therefore, they decided to approach interest rate policy carefully and evaluate the situation on a meeting-by-meeting basis.
According to the U.S. Labor Department’s report on Wednesday, the U.S. producer price index witnessed a 0.5 percent increase in September. This surpassed the Dow Jones estimation of a 0.3 percent rise but was lower than the 0.7 percent growth reported in August.
San Francisco Fed President Mary Daly recently stated that with U.S. inflation declining from its peak, the risk of raising interest rates too little no longer outweighs the risk of raising them excessively.
Atlanta Fed President Raphael Bostic believes that there will be no further rate hikes in the United States.
Fed Governor Christopher J. Waller remarked during a fireside chat on Wednesday that the Federal Reserve can monitor the situation and observe the developments before implementing any additional measures with regards to interest rates as the financial markets tighten.
The U.S. consumer price index (CPI) data is scheduled to be released on Thursday.
In the case of silver, the December delivery experienced a rise of 18.00 cents, or 0.82 percent, concluding at 22.133 dollars per ounce. Likewise, platinum for January delivery witnessed a 2.80 dollar increase, equal to 0.31 percent, and ended at 893.00 dollars per ounce.
Credit: The Star : News Feed
