mining-Spot gold is up 1.5% to $1,202 per ounce after finding some support from the Federal Reserve.
While the Federal Open Market Committee found reason to be less accommodative—good job growth and rosy housing sector—it still worried about diminished business investment and low inflation rate. The committee decided to keep the federal fund rate the same. A rise in the rate is expected later in the year.
“When the Committee decides to begin to remove policy accommodation, it will take a balanced approach consistent with its longer-run goals of maximum employment and inflation of 2 percent,” write the FOMC in a news release.
“The Committee currently anticipates that, even after employment and inflation are near mandate-consistent levels, economic conditions may, for some time, warrant keeping the target federal funds rate below levels the Committee views as normal in the longer run.”
Gold’s other supports are weakness in China and never-ending Grexit talks. Debt negotiations fell apart with the European Union and Greece on Sunday. Asian markets were down on Thursday.
Spot silver is up 1.61% to $16.38 per ounce.