Precious metals stay flat ahead of the Fed minutes release

It now appears to be a coin toss as to whether they decide to hike before the end of the year.

Precious metal prices were flat as investors waited on Fed meeting minutes

Precious metal prices were flat as investors waited on the minutes of the last Federal Reserve meeting, due after the UK market closed on Wednesday.

Following the meeting the Fed shocked the world by hinting that it may raise interest rates in December and the minutes will show the conviction to act among its members.

Odds of an increase had plunged after the Fed failed to raise rates in September but it now appears to be a coin toss as to whether they decide to hike before the end of the year.

Christopher Vecchio, currency analyst, at DailyFX, said: “Typically, these minutes only generate a modest market reaction, but given the outcome of the October meeting, and in turn, the expectations for the December 16 meeting, today's set of minutes may carry additional weight.”

He added that while markets are already aware of the shift in Fed tone, they are likely to pay extra attention to what provoked the Fed to change its mind and upgrade its assessments.

Elsewhere, Thomson Reuters GFMS interim silver market review forecast a supply deficit of 42.7mln ounces this year.

While physical demand is expected to fall by 2.5%, supply is set to fall even more sharply by around 3.3%.

According to the figures, mining production will hardly expand at all, while the supply of scrap silver will decline.

Commerzbank said: “If this turns out to be the case, 2015 would be the third consecutive year of deficit, which should lend support to the silver price in the medium to long term.”

Silver was trading 0.3% lower to US$14.14.

Elsewhere, gold was down US$1 to US$1,068 while platinum eased US$3 to US$851.

Major Movers

Randgold Resources up 22p to 3,951p

Fresnillo up 229 to 694p

Anglo American up 19p to 449p

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