Spot gold prices were little changed on Wednesday after the Federal Reserve signaled that it would remain patient when it comes raising interest rates.
In a statement after its latest policy meeting, the Fed made clear that no rate increase is imminent. Chair Janet Yellen said after last month’s meeting that by saying it would be “patient,” the Fed was signaling there would be no rate increase for at least two meetings.
The Fed’s statement Wednesday said the factors holding inflation below its 2% target rate have intensified since its last meeting in December. Inflation has stayed ultra-low partly because of a plunge in energy prices and a steadily strengthening dollar.
The Federal Open Market Committee is scheduled to release a statement at the end of its two-day policy meeting later on Wednesday and a dovish bias could support a non-interest bearing asset such as gold.
Decreasing 2.5% made Japanese silver the biggest mover of the day, finishing at JPY 669.00 ($5.68) per 10 grams on Wednesday, January 28. After a 0.7% increase, US silver finished the day at $18.03 per ounce. Chinese silver prices rose 0.4% to CNY 3,765 ($603.23) per kilogram. At INR 40,068 ($652.69), the price of Indian silver finished the market day up 0.2% per kilogram.
Following a two-day drop, the price of US gold bullion increased by 0.8% to $1,292 per ounce. The price of Chinese gold bullion increased 0.8% to CNY 259.60 ($41.59) per gram. The price of Japanese gold bullion fell 0.6% to JPY 4,856 ($41.23) per gram. The price of Indian gold bullion flattened at INR 28,002 ($456.14) following two-days of declines.
The price of US platinum bar rose 1.0% to $1,260 per ounce after a two-day drop. Chinese platinum bar prices inched up 0.7% to CNY 270.00 ($43.26) per gram. The price of Japanese platinum bar remained steady at JPY 4,749 ($40.32) per gram.
The price of Japanese palladium bar is back up, rising by 2.3% on Wednesday to close at JPY 2,950 ($25.05) per gram. US palladium bar finished the day up 0.3% to $779.00 per ounce. The price of Chinese palladium bar held steady at CNY 174.00 ($27.88) per gram.