Small gains for precious metals

Gold futures switched between small gains and losses on Wednesday

Precious metals ended little higher at Comex on Wednesday, 17 December 2014 at Comex. Gold futures switched between small gains and losses on Wednesday in electronic trading, after briefly jumping above the key round number of $1,200 in the wake of what some more-dovish-than-anticipated Federal Reserve statement.

Gold for February delivery was last down $2.70, or 0.2%, to $1,191.60 an ounce. Before the Fed release hit at 2 p.m. Eastern, February gold had settled slightly higher but under $1,200 up 20 cents to $1,194.50 an ounce, snapping a five-day losing streak.

March silver jumped 18 cents, or 1.1%, to settle at $15.93 an ounce.

As expected by some, the Fed removed the "considerable time" language from its policy statement, but that reference was replaced with a call for "patience," which essentially conveyed the same message. Above all, Chair Yellen reiterated that the central bank will remain data-dependent and reserves the right to accelerate, or defer, a rate hike in accordance with what the data are communicating about the progress being made toward the Fed's dual mandate. With regard to inflation, Ms. Yellen touched on the drop in oil prices during her press conference, but showed little concern, saying the decline is expected to be transitory.

Still, a firming dollar held back gold on Wednesday, as the dollar inched up against most major rivals. Commodities such as gold that trade in dollar terms often are hurt by a stronger greenback.

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