In the first Federal Open Market Committee meeting for the year, which was concluded today, January 25th, it was announced the Fed will the keep currently low interests rates until late 2014; gold and silver prices sharply increased following this news .
The FOMC referred to the progress of the U.S. economy including the rally in the U.S. labor market, and the growth of the U.S. economy in 2011. But the slow growth in business fixed investment and the slow recovery in the housing sector keeps the FOMC worried.
Since the U.S. inflation was stable in recent months and this direction is also expected to continue in the long run, the FOMC felt comfortable to issue this pledge of keeping the low interest rates of 0 to 0.25% at least until late 2014.
A few months back the FOMC pledged to keep rates low until mid 2013.
On the other hand the FOMC didn’t come up with a new stimulus plan. But this pledge is something that the market very promptly reacted to as the U.S. stock markets are currently rising , the U.S. dollar is depreciating against major currencies including the Euro and precious metals prices resumed their upward trend as gold and silver prices are traded sharply up.
Euros to US dollar exchange rate is currently traded up at 1.3087 a 0.3945% increase as of 20:24*.
Current gold price, short term futures (February 2012 delivery) is traded at $1,706.7 per t oz. a $42.2 increase as of 20:08*.
Current silver price, short term futures (February 2012 delivery) is traded at $33.225 per t oz. a $1.25 increase as of 20:08*.
(* GMT)
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