"I think what the comments show is both the Fed statement and Bernanke's press conference...they just reaffirm that QE (quantitative easing) is ending, but they did also go on to say that with this economy expanding only moderately, accommodative policies are appropriate and that's very supportive of gold because, whether or not inflation is coming, certainly gold investors seem to be favoring that it does," said Jim Steel, HSBC chief commodities analyst.
Bernanke, in his comments, acknowledged increasing commodities prices are boosting overall consumer inflation, but he said measures of underlying inflation have increased modestly and longer-term inflation expectations have been stable. The Fed, therefore, expects the effects on inflation from rising commodity prices to be temporary.
"On the face of that, both gold and silver went up anyway. It implies there's a little disconnect there," said Steel.
"That played a role in the dollar coming down and the euro continue to be strong. With that and the crude market rallying, it reinforced what went on in gold and silver," he said.
The dollar lost a percent against the euro, which was at 1.4794.
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