Gold futures closed lower on Wednesday (January 26) following the Federal Reserve (Fed) meeting. No big surprises there have been and still only empty words.
- Gold futures fell $22.8, or 1.23%, at $1,829.7 per ounce.
- Silver was down 8.9 cents, or 0.37%, at $23.807 an ounce.
- The platinum was up $20.4, or 1.99%, at $1,045.9 per ounce.
- The palladium futures were up $161.70, or 7.4%, at $2,350.60 an ounce.
Before the announcement of the interest rate decision and the FOMC press conference, the mood on the markets was definitely set to wait and see. However, after it turned out that even after this meeting no big surprises have arisen but only further announcement words, many traders have probably decided to take profits. The rise in U.S. 10-year Treasury bonds to over 1.85% and a strong dollar also put pressure on the price of gold.
At its meeting today, the Federal Reserve’s Monetary Policy Committee (FOMC) voted unanimously to keep short-term interest rates at 0.00-0.25%.
The Fed statement said, “Since inflation has rebounded above 2% and the labor market is strong, the FOMC Therefore, it is expected that it is appropriate to raise the short-term interest rate target soon.”
While the Fed did not give a clear date for a rate hike, it did signal a March rate hike. This could be the first-rate hike since December 2018.
The Fed’s next Monetary Policy meeting will be held on March 15 and 16.
Trading conditions on the gold market were also put under pressure by strong US economic data. The U.S. Department of Commerce reported a jump in new home sales to 811,000 units in December. MoM, this means an increase of 11.9 percent.
The Spot Market is Open
Thursday, January 27, 2022