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Gold Rallies as Fed Loses Patience

Summary:
Gold and other precious metals rallied, erasing the earlier losses, after the Federal Reserve made a monetary policy announcement today. The monetary policy remained unchanged, but analysts focused on the fact that the statement lost the word “patient”. That led to speculations that the US central bank may start cutting interest rates soon, maybe even at the next meeting in July. The projections made an interesting revelation: while the dot plot showed no cuts this year, 8 of 17 Federal Open Market Committee members were anticipating a cut by the end of this year. Furthermore, 7 of them were expecting two cuts. And James Bullard actually voted for cutting rates at the current meeting. Futures for delivery of gold in August rallied 0.61% to ,359.00 per troy ounce as of 20:19 GMT on COMEX

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Gold and other precious metals rallied, erasing the earlier losses, after the Federal Reserve made a monetary policy announcement today. The monetary policy remained unchanged, but analysts focused on the fact that the statement lost the word “patient”. That led to speculations that the US central bank may start cutting interest rates soon, maybe even at the next meeting in July.

The projections made an interesting revelation: while the dot plot showed no cuts this year, 8 of 17 Federal Open Market Committee members were anticipating a cut by the end of this year. Furthermore, 7 of them were expecting two cuts. And James Bullard actually voted for cutting rates at the current meeting.

Futures for delivery of gold in August rallied 0.61% to $1,359.00 per troy ounce as of 20:19 GMT on COMEX today. July contract for silver advanced 0.78% to $15.11 per ounce. Spot price for platinum climbed 0.90% to $811.35 per ounce, while palladium surged as much as 1.48% to $1,503.98 per ounce.


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Vladimir Vyun
Vladimir is an online journalist with background in computer science and work experience in pension funds. He contributes news reports, fundamental analysis and sentiment forecasts to TopForexNews.com and CommodityBlog.com. His main specialization is the currencies of emerging economies and inter-market correlations with commodity and bond trading.

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