Fed and BOJ : affect precious metals
Fed and BOJ : affect precious metals
According to FOMC, the conditions have improved from a financial point of view and global risks have been diminishing. Fed also highlighted some signs of improvement in the labor market. Reading the statement they issued leads to the thought that a possible rise in rates could be a possibility around next June. In Japan, BoJ surprisingly didn’t announced any new measure of monetary stimulus, creating some disappointments. This situation resulted in a sharp decline of the Japanese lists and this caused an appreciation of the exchange rate.
Following Fed’s statement, precious metals have lost ground, with gold that has gone to 1237 $/Oz and silver located at 17 $/Oz area. However this morning, after the disappointment caused by Boj, precious metals have changed directions and have been dealing respectively 1,256 $/Oz (gold) and 17.4 $/Oz (silver). Gold has gained about $ 20 from its minimum levels, while silver has gained about 40 cents.
Edoardo Biagini