Moderate gains for bullions

Prices extend gains in electronic trading following FOMC minutes

Bullion prices ended the U.S. day session with moderate gains on Wednesday, 09 July 2014 and showed a muted reaction to the afternoon release of the latest minutes of the FOMC meeting of the Federal Reserve. Gold futures recouped on Wednesday some of what they lost in a trio of downbeat sessions, then extended gains in electronic trading following minutes of the U.S. Federal Reserve 's June meeting.

Gold for August delivery rose $7.80, or 0.6%, to settle at $1,324.30 an ounce on the Comex division of the New York Mercantile Exchange. Prices for the metals had tallied a loss of more than $14 an ounce, or 1.1%, over the past three sessions.

September silver climbed 5.5 cents, or 0.3%, to end at $21.07 an ounce for the regular Comex session.

Minutes from the Fed's last meeting were released after regular metals trading on Comex ended on Wednesday. The minutes revealed the belief among officials that investors have displayed too much complacency with regard to risk. Furthermore, the minutes indicated that the committee has discussed its exit strategy tools with the general expectation of a final $15 billion taper taking place in October if the current outlook holds up.

Traders and investors are keeping a closer eye on the Middle East, as Israel has launched a military offensive on the Gaza strip. Gold may be seeing some safe-haven demand due to the latest military action by Israel.

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