Gold, silver fall ahead of Fed meeting
New York (Dec 17) Gold and silver slipped below key levels of US$1,200/oz and US$16/oz, respectively, on Wednesday on fears of earlier than expected interest rate rises in the US.
The yellow metal lost US$6.75 to close at US$1,195.75/oz, its lowest since December 8, while silver slipped 34 cents to US$15.95/oz, its first dip below US$16/oz since December 1, following falls on Tuesday.
The falls came ahead of a report by the US Federal Open Market Committee (FOMC), which many analysts expect to signal earlier interest rate rises than previously expected.
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In particular, removal of a pledge to keep interest rates at zero for a "considerable period of time" would be likely to send gold and silver lower, Commerzbank said in a note.
The lower prices also came amid further US dollar strength, with the greenback rising to above 80.5 euro cents on Wednesday after trading around 80 cents the previous afternoon.