Gold moves higher after sharp drop
Gold futures on the COMEX Division of the New York Merc Wednesday closed higher in a late-session rebound, as bargain hunters entered into the market following a sharp decline in the Gold price.
The most active Gold contract for Feb delivery gained 0.7 oz, or 0.05%, to settle at 1,333.
Market players said that the Gold price has tended to be weaker at the beginning of the year, but some optimistic investors still have a Bullish attitude over the Gold market, and tend to add Gold holdings whenever the price falls into the acceptable range.
Gold has lost 6% since the beginning of this year, after ending Y 2010 with a 30% gain. Analysts say that the factors that had boosted the Gold market in Y 2010 are still present, i.e. fears of currency debasement and worries about the sovereign debt levels in Europe.
Silver for Mar delivery lost 32.3c, or 1.2%, to 27.128 oz. and Apr Platinum increased 9.6, or 0.54%, to 1,796.9 oz.
Crude Oil price rises despite inventory increase
US Crude Oil futures price rose Wednesday, despite the surprising gain in inventories.
US commercial Crude Oil stocks added 4.8M bbls to 340.6M bbls last week, mostly attributable to a rise in imports, according to the Energy Information Administration's weekly report Wednesday.
However, the Federal Reserve announced it would continue its 600-billion-dollar quantitative easing policy, which helped snap the oil price's six-session losing streak.
Light, Sweet Crude Oil for Mar delivery rose 1.14 to 87. 33 bbl on the New York Merc.
The US Dollar closed mixed on US Fed decision
The USD traded mixed against major currencies in late New York trading Wednesday as the US Fed announced it would continue its US$600B+ QE-2 policy.
The US Federal Reserve announced its decision in a statement following its policy-setting meeting Wednesday
The Fed said the economic recovery is continuing, though at a rate that has been insufficient to bring about a significant improvement in labor market conditions. Also, the Fed said the inflation was somewhat low, giving it another reason to continue its stimulus plan.
The Dollar Index slipped to near 77.80 Wednesday's trading session.
The EUR and GBP both rose against the USD in late Wednesday trading, while the rose surged against the Japanese Yen. In late Wednesday trading, the dollar bought 82.45 Yen, comparing with 82.15 late Tuesday, and the EUR rose to 1.3687 from 1.3675. The GBP also rose to 1.5885 dollars from 1.5798.