Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold slipped 0.2%, posting its first down session in five, as traders took profits from the recent rally and digested today�s remarks from the Fed. Following its monthly meeting, the FOMC issued a policy statement saying that it will continue its current program of buying $85 billion in long-term bonds, known as quantitative easing, each month for an indefinite period. In addition, target interest rates will remain near zero for as long as inflation remains below 2.5% and unemployment remains above 6.5%, which Fed now expects to be until in mid-2015. Long-term, more monetary easing is expected to support higher gold prices because it increases the risk of inflation. Today, however, traders shifted profits from gold�s three-week high into equities after the assurances of continued easing boosted risk appetite and rallied U.S. equities. Gold was supported by a falling dollar, stemming deeper declines. Silver also fell slightly, dropping 0.1%, while platinum and palladium added 1.7% and 3.1%, respectively, on renewed commodities demand.

At the Comex close: April gold slipped $3.80 to $1,607.50; May silver dropped 3 cents to $28.82 ; April platinum gained $27.10 to $1,582.50; and June palladium rose $23 to $758.20 an ounce.