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Commodities Brief – Precious metals retreat to summer levels ahead of FOMC

Earlier today, Gold Prices sustained a prolonged break below the 1600 region for the first time since mid-August. Ahead of the FOMC later today at 17:00 GMT, the yellow metal has been trading negatively since European trading, operating as low as 1588.25 (session low). At the onset of American trading Gold has recovered the USD $1590.05 level, though an early cessation of $85billion monthly bond purchases in 2013 could drive prices lower.

Silver prices have also been on the receiving end of a thrashing Wednesday, having plunged below the psychological 29.00 support level for the first time since September. Like its counterpart, the short-term direction could ultimately depend on what transpires at the FOMC minutes later today. Currently, Silver is trading at just USD $28.92 per oz in these moments.

Crude oil prices have crept higher leading into the American session, as the price sets its sights on the 97.00 level, which was attained briefly earlier today. At the time of writing, crude prices have settled at USD $96.86/bbl.

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The dollar trades higher versus most competitors, with sterling losses leading the way on an unexpectedly dovish BOE vote. However, the greenback lost some of its shine after the latest string of US data boosted risk appetite among investors. Still, Wall Street indexes opened nearly flat and commodity currencies remain under pressure. Looking ahead, the minutes of the last FOMC minutes will be published at 19:00GMT although there shouldn’t be anything surprising in there after the statement came in fully as expected.
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