Gold rose in Wednesday trading prior to the release of a closely watched statement from the Federal Reserve. At the conclusion of the Fed’s Open Markets Committee Meeting, the central bank indicated that economic stimulus efforts will continue despite signs of economic growth.
However, at a press conference this afternoon, Fed Chairman Ben Bernanke signaled that the central bank’s bond-buying could slow in coming months, and stocks and metal-related funds alike declined on the news.
While spot gold in U.S. trading fell off, gold futures for July delivery rose 0.5% to $1,373.70 per ounce on Wednesday, according to CME Group. Gold traded as high as $1,374.50 and as low as $1,363. Gold bullion closed in London at $1,361, according to BullionVault.
Silver futures for July delivery fell 0.2% to $21.62 per ounce. Wednesday’s high for silver was $21.85 while the low was $21.31.
Gold and silver funds declined in Wednesday trading.
- The SPDR Gold Trust (GLD) dropped 1.2%.
- The iShares Gold Trust (IAU) also fell 1.2%.
- The iShares Silver Trust (SLV) slumped 1.3%.
Gold and silver mining ETFs moved sharply lower during the day.
- The Market Vectors Gold Miners ETF (GDX) sank 3.1%.
- The Market Vectors Junior Gold Miners ETF (GDXJ) slid 3.7%.
- The Global X Silver Miners ETF (SIL) dipped 3%.
Gold mining shares sank on Wednesday.
- Agnico-Eagle Mines (AEM) declined 2.3%.
- Barrick Gold (ABX) tumbled 4.7%.
- Eldorado Gold (EGO) slid 4.1%.
- Goldcorp (GG) declined 2.5%.
- Kinross Gold (KGC) retreated 3.5%.
- Newmont Mining (NEM) fell 2.2%.
- NovaGold Resources (NG) was unchanged.
- Yamana Gold (AUY) slumped 3.2%.
Silver mining shares retreated during the day.
- Coeur d’Alene Mines (CDE) dropped 2.2%.
- Hecla Mining (HL) fell 2.8%.
- Pan American Silver (PAAS) sank 3.1%.
- Silver Wheaton (SLW) moved down 2.4%.
- Silver Standard Resources (SSRI) decreased 3.3%.
As of this writing, Christopher Freeburn did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault contributed to this report.