Fed Helps Oil, But Not Precious Metals

It was another volatile day at the office for gold and silver as neither precious metal was on the receiving end of any help from the release of meeting minutes by the Federal Open Market Committee. Comex gold for June delivery, fell $1.50, or 0.1%, to finish the day at $1,642.30 a troy ounce despite the fact the the PowerShares DB US Dollar Index Bullish (NYSE: UUP) closed with a small loss on light volume. While the Federal Reserve pledged to keep interest rates low through at least late 2014, something that should have been to the liking of gold bugs, the central bank did not make any overt comments about the chances of a third round of quantitative easing. The Fed did say it stands ready to purchase more bonds should U.S. economic conditions falter, but saying it will buy bonds does not exactly translate to QE3 and it appears to be QE3 that gold needs to regain its lost luster.

The Fed also raised its 2012 U.S. GDP growth forecast and lowered its unemployment forecast, but the impact of those comments on gold, which is now a risk asset, appeared to be muted by the fact that the Fed is also modeling lower GDP growth for 2013 and 2014. Somehow someway, the SPDR Gold Shares (NYSE: GLD) gained 0.2% as did the iShares Gold Trust (NYSE: IAU). Impressive considering losses for both ETFs grew immediately after the FOMC minutes were released.

The iShares Silver Trust (NYSE: SLV) was even more volatile on the day as volume swelled to more than 33% above the daily average. SLV did finish lower by 0.2%, but buyers stepped in as the ETF flirted with $29, indicating there might be some resistance there.

In good news for gold, Indian gold retailers Tuesday reported brisk trade ahead of the Akshaya Tritiya festival, the New York Daily News. Buying gold around the time of the Akshaya Tritiya festival is believed to bring good fortune and India could bring some good fortune gold's way as it is the world's largest consumer of the yellow metal.

The Fed comments helped the ETFS Physical Platinum Shares (NYSE: PPLT) to a gain of half a percent while the ETFS Physical Palladium Shares (NYSE: PALL) shed two-thirds of a percent on volume that was well above the daily average.

Despite an ugly day for silver, the Global X Silver Miners ETF (NYSE: SIL) surged 3% on volume that was better than triple its average. Gold miners followed suit as the Market Vectors Gold Miners ETF (NYSE: GDX) climbed 2.6% on turnover that was almost 75% better than usual. The Market Vectors Junior Gold Miners ETF (NYSE: GDXJ) climbed 3.5%.