Gold up after Fed's rate decision
By Myra P. Saefong, CBS.MarketWatch.com
Last Update: 5:42 PM ET Jun 28, 2000 NewsWatch
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NEW YORK (CBS.MW) -- Gold prices and equities rose Wednesday after the Federal Reserve, just minutes before the futures market closed, announced that it will leave short-term interest rates unchanged.
August gold gained $6.80 to $294.30 an ounce on the Commodities Exchange division of the New York Mercantile Exchange. July silver rose 3.1 cents to $4.989 an ounce.
Gold?s rally held firm through the close of trading after the Fed decision, which is ultimately bullish for the metal. Gold rises in value when investors seek a hedge against inflationary pressures. See full story.
The equities market also mirrored the gains in gold prices. The Philadelphia Gold and Silver Index ($XAU: news, msgs) added 3.5 percent and the CBOE Gold Index ($GOX: news, msgs) rose 2.5 percent.
Ashanti Goldfield shares (ASL: news, msgs) gained 1/16 to 1 11/16, while shares of Placer Dome Gold (PDG: news, msgs) rose 3/8 to settle at 9 11/16.
Comex gold warehouse stocks, as of late Tuesday, were flat at 1,890,140 ounces. Silver stocks were also unchanged at 101,277,885 ounces.
In other metals highlights, July copper rose 0.1 cent to 81.85 cents a pound. The London Metals Exchange said copper supplies, as of early Wednesday, were down 3,025 metric tons to 563,200 metric tons. Comex stocks were up 125 to 73,834 short tons.
September palladium closed up $6.10 to $660.25 while July platinum climbed $16.30 to $572.80 an ounce.
Best Regards, J.T. |
