Gold Prices Rise Following Steady Fed; U.S. Jobs Data Awaited

Posted by Debbie Carlson of Kitco News

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Gold prices were higher in European trade following Wednesday’s accommodative statement from the Federal Reserve and are set to start North American dealings on firmer footing.

At 7:44 a.m. EDT most-active December gold futures on the Comex were up $11.50 an ounce at $1,324.50. September silver rose 12.7 cents to $19.755. Nymex September palladium rose $5.45 to $731.80, and October platinum gained $11.10 to $1,440.40.

The strength in precious metals prices comes as the markets rebounded from weakness seen on Wednesday. Market participants were apparently soothed by the statement from the Federal Open Market Committee, analysts said, which came out after the metals ended their day session.

“We don’t have to look any further than the Fed’s comments from last night. On balance they were helpful to people who are hoping QE (quantitative easing) doesn’t end soon. The Fed said there are downside risks to the economy, inflation is too low, the risk of deflation is there, mortgage rates are rising,” said Robin Bhar, head of metals research at Societe Generale.

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