Gold and silver pared gains
After starting the day on a positive note by gaining in the early morning hours on July 28, gold prices pared the gains as the day progressed. At 2:40 PM EST on July 28, the COMEX gold futures contract for December delivery was trading at $1,342.25 per ounce—a gain of ~0.58%.
Silver was trading at $20.42 per ounce—a gain of ~1.2%. Read Copper and Gold Are Stable in the Early Morning on July 28 to learn how metals traded in the early morning hours on July 28
Gold prices boosted by the FOMC statement
The FOMC (Federal Open Market Committee) statement was released after the two-day policy meeting. The statement released on Wednesday at 2:00 PM EST. Gold prices spiked right after the release of the FOMC statement on July 27. Most of the market participants received the statement as dovish. The Fed noted that the “near-term risks to the economic outlook have diminished” and the labor market has “strengthened.” As of July 28, the probability of an interest rate hike in September stands at 18%. The Fed’s interest rates will dent the sentiment. Higher interest rates are bearish for gold. Read Why Gold Is Closely Tied to Interest Rates to learn why interest rates impact gold prices.
The market is looking forward to the highly anticipated Bank of Japan meeting scheduled for July 29. At 3:20 PM EST on July 28, precious metal producers Barrick Gold (ABX), Newmont Mining (NEM), Silver Wheaton (SLW), and Royal Gold (RGLD) gained ~4.4%, ~3.0%, ~4.2%, and ~3.6%, respectively. The SPDR Gold Trust ETF (GLD) gained ~1.3%.
In the next part, we’ll discuss how companies in the metals and mining sector performed on July 28.