Gold Funds, Miners Surge After FOMC Announcement

Mining stocks jumped sharply during the afternoon

   

Gold Funds, Miners Surge After FOMC Announcement

PreciousMetalsRecap Gold Funds, Miners Surge After FOMC AnnouncementGold futures settled fractionally lower in Wednesday trading ahead of a statement from the Federal Reserve on the future of its monthly bond-buying, but rose sharply in electronic trading afterward.

At the conclusion of its Federal Open Markets Committee Meeting in the afternoon, the Fed announced that it would not begin reducing its economic stimulus efforts any time soon. Many investors had expected the Fed to signal near-term plans to begin drawing down its stimulus program.

gold bars Gold Funds, Miners Surge After FOMC Announcement
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Equities markets headed higher, and gold rallied in post-settlement comex trading, surging almost 3% in the late afternoon.

Gold futures for December delivery settled down 0.1% to $1,307.60 per ounce on Wednesday, according to CME Group. Gold traded as high as $1,348 and as low as $1,291.50. Gold bullion closed in London at $1,368, according to BullionVault.

Silver futures for December delivery fell 1% to $21.56 per ounce. Wednesday’s high for silver was $22.05, while the low was $21.23.

Gold and silver funds jumped in Wednesday trading.

  • The SPDR Gold Shares (GLD) surged 4.5%.
  • The iShares Gold Trust (IAU) gained 4.3.
  • The iShares Silver Trust (SLV) soared 6.4%.

Gold and silver mining ETFs vaulted higher during the day.

  • The Market Vectors Gold Miners ETF (GDX) advanced 9%.
  • The Market Vectors Junior Gold Miners ETF (GDXJ) rocketed up 11.3%.
  • The Global X Silver Miners ETF (SIL) jumped 11.1%.

Gold mining shares rallied sharply on Wednesday.

  • Agnico-Eagle Mines (AEM) added 7.8%.
  • Barrick Gold (ABX) rose 9.9%.
  • Eldorado Gold (EGO) moved up 8.1%.
  • Goldcorp (GG) climbed 8.2%.
  • Kinross Gold (KGC) gained 8.6%.
  • Newmont Mining (NEM) increased 8.2%.
  • NovaGold Resources (NG) bounced up 8.2%.
  • Yamana Gold (AUY) jumped 8.8%.

Silver mining shares shot up during the day.

  • Coeur d’Alene Mines (CDE) jumped 10%.
  • Hecla Mining (HL) added 9%.
  • Pan American Silver (PAAS) climbed 9.4%.
  • Silver Wheaton (SLW) rose 9.2%.
  • Silver Standard Resources (SSRI) surged 11.4%.

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.


Article printed from InvestorPlace Media, http://investorplace.com/2013/09/gold-futures-dip-prior-fomc-announcement/.

©2014 InvestorPlace Media, LLC

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