New York - The Federal Reserve's upbeat assessment of the economy on Wednesday did little to stir commodities.
Prices for oil, gold and other metals finished lower, while the dollar seesawed as the Fed said the pace of economic activity has "picked up" since its last meeting in August.
Markets for many commodities were already closed before the Fed's statement, which came at the end of a two-day policy meeting Wednesday afternoon. But prices declined further in after-hours trading as the dollar recovered from a brief, sharp drop following the announcement.
The Fed's decision to keep interest rates at a record low of near zero did not come as a surprise, but investors were hoping for more clarity on when the central bank might decide to raise rates in the future as a way to ward off inflation. The Fed reiterated in its statement Wednesday that inflation is not yet a concern and that it will likely be subdued for some time. Investors often use gold and oil as hedges against inflation.
Commodities, which are priced in US dollars, have surged this year thanks in no small part to the weak greenback, the value of which has eroded amid the rock-bottom interest rates and unprecedented government spending. The weaker dollar makes commodities cheaper for foreign investors.
On the New York Mercantile Exchange Wednesday, gold for December delivery slipped $1.10 to finish at $1,014.40 an ounce, while December silver dropped 20.5 cents to $16.91 an ounce.
October platinum fell $11.40 to $1,327.80 an ounce.
Among industrial metals, December copper futures lost 5.65 cents to $2.8080 a pound.
Besides being hurt by the stronger dollar Wednesday, crude and gasoline prices took a big hit from more evidence of weak energy demand. Natural gas, however, extended recent gains, spiking nearly 7 percent. Natural gas has lagged the broader energy market this year.
Light, sweet crude for November delivery tumbled nearly 4 percent, or $2.79, to settle at $68.97 a barrel after the government reported an unexpected rise in last week's crude inventories. Crude in storage is now 10.6 percent above year-ago levels, the Energy Department's Energy Information Administration said in its weekly report.
Gasoline for October delivery fell 7.67 cents to $1.7049 a gallon, and heating oil lost 5.27 cents to $1.7594 a gallon.
Natural gas rose 25.1 cents to settle at $3.86 per 1,000 cubic feet.
Grain prices were mixed on the Chicago Board of Trade.
December wheat futures added 4.25 cents to $4.60 a bushel, while corn for December delivery rose 4.50 cents to $3.3025 a bushel.
November soybeans lost 1.5 cents to $9.2050 a bushel.
Other soft commodities, including cocoa, sugar and orange juice, fell. - Sapa-AP
