LONDON (MarketWatch) — Gold prices moved back above the $1,200 mark on Thursday, catching a lift from some dovish words from the Federal Reserve. Leading up to the statement, gold had steadily weakened on the prospects of the central bank shortening the timeline on higher interest rates.
At last check, gold for February delivery GCG5, +0.98% was up $14.10, or 1.2%, to $1,208.90 an ounce. March silver SIH5, +1.33% added 26 cents, or 1.6%, to $16.18 an ounce.
A day earlier, gold put an end to its five-day losing streak with a slight advance that didn’t quite take prices above the key $1,200 mark. The Fed dropped the pledge to keep rates close to zero for a “considerable time” and replaced it with new language that the U.S. central bank “can be patient in beginning” to tighten monetary policy. Check out MarketWatch’s live blog from the event.
“The FOMC statement was deemed by gold market traders to be slightly bullish, judging from the modest gains seen right after the statement was released,” said Kitco’s Jim Wyckoff. “The market place is still very concerned about the Russian ruble’s sharp drop this week.”
The ruble USDRUB, -2.23% continued to recover from the bloodbath earlier this week, after Russian President Putin uttered soothing words Thursday that the currency will stabilize and the economic pain will pass.
In other metals trading, January platinum PLF5, +0.80% rose $13 or 1.1%, to $1,212.50 an ounce, while March palladium PAH5, +1.33% gained $12.75, or 1.6%, to $792.00 an ounce. High-grade copper for March delivery HGH5, +0.28% rose 1 cent to $2.88 a pound.
