Gold And Silver React To Federal Reserve Announcement

GOLD

Gold moved higher in early Wednesday trading on the release of an inflation report showing U.S. inflation growth eased in May. The U.S. consumer price index rose at the lowest annual rate in two years last month, signaling that the Fed’s efforts to curb the rising cost of goods and services are starting to pay off.

Gold was trading at $1,955 before the Federal Reserve announced that the Fed Funds rate will not be raised in June. However, news that it is likely that there could be two or more increases by year-end sent Gold and the stock markets lower. At 11am PT today, Gold is trading at $1,942 per ounce, down $2 on heavy volume.

SILVER

Silver followed Gold higher in early trading, reaching a high of $24.16 before the Federal Reserve announcement. Then Silver followed Gold lower, hitting $23.70 before seeing bargain buying. At 11am PT today, Silver is up $0.22 per ounce, trading at $23.90