Commodities Brief – Gold hovers above 1600 level, precious metals eye FOMC

Gold price managed to hold above the 1600 level entering European trading Wednesday (1603.65 session low) as price peaked briefly at the 1609 region before abruptly returning its daily advances. This recent move has become commonplace in recent days, as the unsettled situation of Hedge Fund Managers and the aftershock of the G20 conference still provide weaknesses for the yellow metal. At the time of writing, Gold is trading at USD $1605.09 per oz, clinging to positive territory. One key event stands out today as Gold traders will turn their attention to the release of the Federal Open Market Committee minutes, looking for any signs or clues after FOMC members indicated that they intend to end their $85billion monthly bond purchases sometime in 2013, with members divided between a mid- or end-of-year finish.

Conversely, Silver prices managed to hold above the 29.00 level overnight, as the downtrend continued into Wednesday for the white metal. Earlier recovery at the 29.60 region was stymied and ultimately reversed during European trading, dragging the price down to USD $29.49 per oz where it resides presently. Ultimately, any hints later today suggesting the U.S. central bank may be closer to consider ending its monetary stimulus measures, could send silver prices into a tailspin.

In other news, Crude oil prices shown some sparks of life, as the 96.00 level has once again been attained and is in focus, following the back and forth oscillation that seemed to peak at the 96.80 mark earlier today. In recent moments however, crude prices have come under siege, as the price now resides at only USD $96.33/bbl.