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Asia Preview, Gold, Silver and Crude Oil Prices

US Gold futures prices traded higher and near the midday trading range Wednesday afternoon.

Gold and Silver got a boost from a weaken USD index, firmer Crude Oil prices, and from the Bullish implications of the US Fed’s mandate to printing more money for a long time to come.

Feb Gold last traded + 5.60 at 1,715.00 oz.

Spot Gold was last quoted + 3.20 at 1,714.00 oz.

Mar Comex Silver last traded + 0.668 at 33.685 oz.

The US Federal Reserve said Wednesday it decided to end its “Operation Twist” program, and extend its long-bond-buying program to $45-M a month. This is what most of us expected the central bank would do.

The new plan would expand the Fed’s balance sheet and the printing of more Greenbacks.

The FOMC also said it will begin tying interest rate policy to the US unemployment rate, saying as long as unemployment is above 6.5%, rates will not rise.

The math shows the Fed will not raise interest rates for at least 3 more yrs.

Wednesday’s Federal Reserve developments are Bullish for the raw commodity markets. Mr. Bernanke at his afternoon press conference revealed nothing new.

In overnight news: European stocks and the EUE firmed on ideas the FOMC would implement further easing of US monetary policy.

News that Greece did meet its target number for the buying back of its bonds supported the European markets.

Eurozone leaders meet again Thursday to discuss disbursing more aid to Greece. The Italian bond yields dropped at the latest 12-month T-Bill auction Wednesday.

Eurozone industrial production fell 1.4% in October from September.

In the USA: the focus of the market is squarely on the F-Cliff tax increases and spending cuts that is approaching. While there is no apparent movement from either side yet, President Obama said Tuesday evening he thinks a deal will be reached before the end of the year. The market’s odds are a bit higher than 50/50 that there will be a last-minute agreement among US lawmakers to avoid the F-Cliff. The overall situation continues a Bearish drag on many markets, including the raw commodities and stock markets.

The USD index was lower Wednesday, as the fresh printing of Greenbacks is Bearish. The Greenback Bulls are fading technically.

Nymex Crude Oil futures prices rallied on the FOMC news Wednesday, on Short covering and bargain hunting.

Crude Oil (WTI) 86.96 1.17 (+1.36%)

These 2 Key outside markets are in a modestly Bullish mode for the precious metals Wednesday and will continue to impact the precious metals markets daily.

The London PM Gold fixing is 1,716.25 Vs the prior London PM fixing at 1,710.00.

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