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Commodities Brief – Precious metals hold amidst FOMC indecision, crude rally snapped

FXstreet.com (Barcelona) - Gold prices experienced a stark fall during US trading yesterday following the FOMC leak Wednesday. Indeed, the Federal Reserve should start cutting back on purchases of housing bonds as soon as its next meeting, one top Fed official said on Wednesday, just hours after another said talk of trimming the central bank's bond buys was "premature." These divergent views however, the former from inflation hawk Dallas Fed President Richard Fisher and the latter from policy centrist Atlanta Fed President Dennis Lockhart, are emblematic of a split also on display in minutes of the Fed's latest policy-setting meeting. During European trading today, the yellow metal has stuck to a normal consolidation, as the 1561 level proved to be the extent of any recovery. In these moments the price of gold now trades at USD $1558.21 per oz. Ultimately, prolonged stability between the 1570 is bearish for gold, with an intraday bearish bias below this figure.

Silver held by staunch resistance
The white metal experienced dips of its own Thursday, having survived the initial knee jerk reaction surrounding the FOMC indications yesterday. Today, the price bottomed out at 27.41, before ultimately rebounding slightly on Asian buying to trade at USD $27.48 per oz. at the time of writing. Intraday there is a neutral bias as silver spot prices face staunch resistance at 28.00, however a move below the 27.40 could extend the downside wave.

Three-day rally crude rally snapped
Following a three-day rally, WTI Crude oil fell Thursday after concerns emanated out of OPEC and amidst cut reports from the organization due to mitigated global oil demand growth. Indeed, at the time of writing crude trades at USD $94.30/bbl during European trading.

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