Gold News & Info

Source: Bill Musgrave, American Gold Exchange

Austin— Gold slid 0.3% to close the trading session at $1,210, and then another $6 in electronic trade after the Federal Reserve's April policy statement suggested that a June rate hike is still possible.

Summarizing its two-day meeting, the FOMC issued a statement acknowledging that "growth in output and employment slowed" over the last few months. But it largely dismissed the slowdown as the result of "transitory factors," and expects the economy to resume its expansion at a "moderate pace." Most notably, the Fed kept its options open by indicating that it may raise interest rates at any upcoming meeting, depending on trends in the data.

In light of recent data showing the economy stuck in neutral, including today's report that GDP grew at just 0.2% in the first quarter, disappointed traders expected language signaling a deferral of rate hikes until later this year.

The dollar bounced off session lows following the Fed statement, adding to pressure on gold and other commodities denominated in it for international trade. Global equities also fell back, with the Dow and Global Dow both losing around 0.5%.

The other precious metals finished higher, with silver adding 0.4% while platinum and palladium picked up 0.3%.and 0.5%, respectively.

At the Comex close: June gold slipped $3.90 to $1,210; July silver picked up 7 cents to $16.67; July platinum added $2.90, to $1,161.50; and June palladium gained $3.60, to $784.75 an ounce.