Gold, silver rise ahead of Fed policy meeting

Monday - 12/16/2013, 5:30pm EST

The Associated Press

NEW YORK (AP) -- Prices for gold and silver rose Monday ahead of the Federal Reserve's two-day policy meeting this week.

Gold for February delivery was up $9.80, or 1 percent, to $1,244.40 an ounce and silver rose 50 cents, or 3 percent, to $20.10 an ounce.

The Federal Reserve will hold its last policy meeting of 2013 this week. The Fed will likely keep its economic stimulus measures in place at least through March, according to a recent survey of economists. That could affect the dollar and commodities such gold and silver, which are priced in dollars.

Analysts at Barclays said the long-term trend for gold, however, is lower. With the U.S. economy continuing to improve and Congress on track to pass a two-year budget, any economic uncertainty that gold typically thrives in is dissipating. Gold is down 26 percent this year.

Other metals were mostly higher. High-grade copper for March delivery rose 2 cents, or 0.5 percent, to $3.33 a pound. March palladium edged up 15 cents to $716.35 an ounce, while platinum fell $2.80, or 0.2 percent, to $1,360.10 an ounce.

In energy, crude oil was up 88 cents, or 1 percent, to $97.48 a barrel and natural gas fell 7 cents, or 2 percent, to $4.28 per 1,000 cubic feet. Wholesale gasoline rose a penny to $2.644 a gallon and heating oil was up a penny as well to $2.99 a gallon.

In agricultural commodities, wheat for March delivery was down 7 cents, or 1 percent, to $6.218 a bushel and March corn was down 2.3 cents, or 0.5 percent, $4.233 a bushel. January soybeans rose 10.3 cents, or 1 percent, to $13.38 a bushel.


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