Fed remarks send investors to metals

AP News
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Posted: Aug 22, 2012 4:06 PM
Fed remarks send investors to metals

Prices for metals are rising after the Federal Reserve hinted it might do more to prop up the economy.

Gold, silver and other metals are all higher after 2 p.m., when the Fed released minutes from its latest meeting that seemed to show it might get more involved in the economy.

The Fed could extend record-low interest rates or buy bonds as a way to drive investors into the stocks. Some investors buy commodities to protect against inflation when the Fed pumps money into the economy.

Pit trading for metals closed around 1:30 p.m., before the Fed minutes were released, so silver, copper and palladium finished only slightly higher, and gold fell. But all four jumped in after-hours trading.