Los Angeles, CA – Gold and Silver futures posted solid gains following the Federal Reserve’s FOMC statement on Wednesday. Gold jumped over $45 to $1710 an ounce and silver climbed almost $2 to $33.21 on the news that the Federal Reserve intended to continue its accommodative monetary policy through 2014.
The Fed’s announcement caused a rally in U.S. Treasury markets and a weakening of the U.S. dollar index. Other outside markets, which include firmer crude oil prices, also caused precious metals to make solid gains throughout the day.
The Federal Reserve made it clear that it will not raise interest rates until at least 2014, which is much later than investors expected, to aid a sluggish U.S. economic recovery. This news was also concluded after the unemployment rate failed to decrease below 8.5%. After the Fed announcement, the U.S. dollar index fell as the Euro and U.S. Treasuries hit session highs. The central bank also described the unemployment rate as still elevated and said it expects the inflation rate to remain at similar levels consistent with stable prices.
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