Small gains fro precious metals

Gold futures rose modestly for the second day in a row

Bullion prices registered marginal gains at Comex on Tuesday, 16 September 2014 at Comex. U.S. gold futures rose modestly for the second day in a row on Tuesday, as investors placed their bullish bets with the Federal Reserve's two-day meeting underway.

Gold for December delivery rose $1.60 to $1,236.70 an ounce. A day earlier, gold broke a five-day losing streak to nail down a decent gain.

December silver edged up a penny to $18.66 an ounce.

The FOMC is scheduled to release its post-meeting communique and economic projections at 2 p.m. EDT on Wednesday, 17 September, and Chair Janet Yellen is to conduct a press conference half an hour later.

At Wall Street, equity indices hovered near their flat lines during the first two hours of action, but surged in reaction to reports from the Wall Street Journal concerning tomorrow's FOMC statement. Specifically, Fed watcher Jon Hilsenrath indicated that the statement will once again reflect the Fed's intentions to keep the fed funds rate at the zero bound for a considerable time after quantitative easing is wound down. The report sent the market higher since it contrasted with recent speculation that the Fed would drop the 'considerable time' language from its guidance, thus implying a swifter rate hike.

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