Gold prices ended the U.S. day session modestly higher but down from the session high after hitting a two-week high overnight. Silver prices have also seen solid gains the past 24 hours and are now trading not far below the multi-year high scored in early July. A perceived dovish FOMC statement Wednesday afternoon and a lower U.S. dollar index worked to lift the precious metals markets. August Comex gold was last up $5.50 an ounce at $1,332.20. September Comex silver was last up $0.225 at $20.22 an ounce.
"With the U.S. dollar index dipping to 96.717 from 97.173 previously, gold had an opportunity to push to the upside, buoyed by lower yields," HSBC said in a note. "We see potential headwinds for gold if the market begins to assess a U.S. rate rise as coming sooner, rather than later."
With the FOMC meeting out of the way, attention turns to the Bank of Japan meeting that began Thursday and ends Friday. It is expected the BOJ will announce some sort of a new monetary policy stimulus package. This risk now appears to be a package that will disappoint Asian markets—due to high expectations for such an aggressive monetary stimulus package already in the marketplace.
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