Gold and silver prices settled lower in normal trade Wednesday, then shot sharply higher in extended trading after the Federal Reserve unexpectedly announced that it was sticking with its stimulus program.
"Taking into account the extent of federal fiscal retrenchment, the Committee sees the improvement in economic activity and labor market conditions since it began its asset purchase program a year ago as consistent with growing underlying strength in the broader economy," the Fed said in a statement.
"However, the Committee decided to await more evidence that progress will be sustained before adjusting the pace of its purchases."
Gold for December delivery lost $1.80, or 0.1%, to settle at $1,307.60 an ounce on the Comex division of the New York Mercantile Exchange. After news of the Fed announcement surfaced, gold prices soared nearly $60 toward $1,366.
"Gold is rallying as the Fed is not exiting its stimulus program. We are going to have cheap money and low interest rates for a long time," Reuters quoted Axel Merk, portfolio manager of California-based Merk Funds
"This is a game changer, and some of the money that ran away because of tapering fears will be back," Michael Gayed, the chief investment strategist who helps oversee $270 million at New York-based Pension Partners LLC, said in a telephone interview according to Bloomberg. "We are seeing the bullish sentiment return."
Silver for December delivery settled down 22 cents, or 1%, to $21.56 an ounce, trading between $21.23 and $22.51. Silver prices later surged by more than $1.50 to above $23 an ounce.
Gold and silver prices ended lower Tuesday after Labor Department data showed that U.S. inflation climbed less than expected in August.
In PGM futures on Wednesday:
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Snapping a two-session losing streak, October platinum gained $2.80, or 0.2%, to end at $1,425.20 an ounce. The metal ranged from $1,411.80 to $1,461.50.
- Lower for the first time in five sessions, palladium for December shed $3.85, or 0.5%, to close at $703.10 an ounce. Palladium ranged from $696.00 to $720.55.
The PGM’s were also sharply higher in extended trading with platinum above $1,463 and palladium near $718.
London Fix Precious Metals
London precious fixings ended lower. When comparing their Tuesday PM to Wednesday PM London fix prices:
- Gold fell $11.25, or 0.9%, to $1,301 an ounce,
- Silver dropped 50 cents, or 2.3%, to $21.47 an ounce,
- Platinum declined $16, or 1.1%, to $1,420 an ounce, and
- Palladium lost $7, or 1%, to $701 an ounce
U.S. Mint Bullion Sales in September
Sales totals for U.S. Mint bullion products were unchanged Wednesday. In coin totals (not ounces) are the latest daily, September and year-to-date U.S. Mint bullion sales figures:
| American Eagle and Buffalo Bullion Sales | |||||
|---|---|---|---|---|---|
| Wednesday Sales | Last Week | Weekly Sales | September Sales | YTD Sales | |
| $50 American Gold Eagle Bullion Coins | 0 | 2,500 | 3,000 | 6,500 | 603,000 |
| $25 American Gold Eagle Bullion Coins | 0 | 0 | 1,000 | 2,000 | 50,000 |
| $10 American Gold Eagle Bullion Coins | 0 | 2,000 | 0 | 2,000 | 102,000 |
| $5 American Gold Eagle Bullion Coins | 0 | 10,000 | 0 | 10,000 | 465,000 |
| $50 American Buffalo Gold Bullion Coins | 0 | 4,000 | 1,000 | 5,500 | 195,500 |
| White Mountain 5 oz. Silver Bullion Coins | 0 | 3,800 | 0 | 3,800 | 35,000 |
| Perry’s Victory 5 oz. Silver Bullion Coins | 0 | 1,400 | 0 | 1,400 | 25,000 |
| Great Basin 5 oz. Silver Bullion Coins | 0 | 3,000 | 0 | 3,000 | 25,000 |
| Fort McHenry 5 oz. Silver Bullion Coins | 0 | 14,200 | 0 | 14,700 | 25,000 |
| American Silver Eagle Bullion Coins | 0 | 500,000 | 675,000 | 1,850,000 | 34,925,000 |
