By Gavin Adamson

(October 5 – 17:00 ET) – North
American Gold stocks were among
the few gainers after the U.S.
Federal Reserve Open market
committee hinted it could raise
interest rates again before the
end of the year.

Most markets steadily climbed
all morning on heavy speculation
that the Fed would maintain the
status quo on interest rates.
While the Fed didn’t raise the
5.25% overnight lending rate, it
changed its stance on inflation
from “neutral” to “tightening.”
The markets then tumbled back
down.

U.S. analysts are saying the
main Fed worry is low employment.
That could result in rising wages.
Combined with lower productivity
and higher consumer demand,
inflation songs are imminent,
even though they have yet to be
composed.

As a result, the Dow closed up
only 0.64, at 10,400.59. Nasdaq
gained a mere 4.18 to 2,800.15.
The S&P lost 3.10, dropping to
1,301.50.

In Canada, it was much the same
story. The TSE lost 51.13 to
6,991.17. The ME slipped by 29.93
to 3,706.76, and the ASE was also
down in late-day trading, sitting
at around 2,867.

The only exchange to see a gain
was the VSE, which stood 0.93
higher to 422.63 in the middle of
the afternoon – PT. The mining
sector of the VSE index was up
3.45 to 303.63. Stocks like
International Wayside Gold, jumped
by more than 25% to C$0.19. Gold
traded up another $US 8 today,
closing at $326. A month ago, it
stood at about $255.