Gold edged up on Fed policy easing

Source: Dukascopy Bank SA
© Scanpix/Reuters
Precious metals apart from platinum moved higher after the Fed announced additional easing measures and set a threshold for record low interest rates. Rates will remain low as long as unemployment stays above 6.5% and inflation is not higher than 2.5%. However, the effect of FOMC comments was limited as the markets has already priced in Fed policy easing. Meanwhile, weaker greenback added to gains of the commodity group.

Gold climbed on widely-expected Fed decision to expand its asset purchasing plan to USD45 billion a month starting from January.

Silver followed the yellow metal's suit, advancing 1.46%. Softer greenback and slightly stronger global equities spurred the commodity price.

Platinum was the only loser as a previous rally prompted investors to lock in profits. However, the white metal may seek support from a recent decline in global output due to strikes in South Africa.

Palladium inched up amid the Fed comments and broadly softer US Dollar. An expected deficit this year and a few years after also lifted the commodity.
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