Facebook (FB), GoPro (GPRO) and Groupon (GRPN) shoot higher on Q2 earnings beat. READ MORE

Gold Gains As Fed Announces Tapering Plans

Silver rose, but mining stocks mostly sank

   

Gold Silver GLD IAU SLVGold rose modestly in Wednesday trading even as the U.S. Federal Reserve announced plans to trim its monthly bond-buying by $10 billion in January. U.S. equities also rose sharply during the day.

Though the Fed will begin reducing its economic stimulus, central bank officials signaled that they will continue to keep a key interest rate near zero even after the U.S. unemployment rate falls below 6.5%. Investors and economists had long expected the Fed to start cutting back on stimulus efforts. A flurry of better-than-expected economic reports in recent weeks ignited growing speculation that the tapering could begin this month.

3 Stocks Hitting Gold in the Digital Oilfield
3 Stocks Hitting Gold in the Digital Oilfield

Gold futures for February gained 0.4% to $1,235 per ounce on Wednesday, according to CME Group. Gold traded as high as $1,244 and as low as $1,220. Bullion closed in London at $1,226, according to BullionVault.

Silver futures for March delivery climbed 1.1%, to $20.06 per ounce. Wednesday’s high for silver was $20.11, while the low was $19.80.

Metal funds sank on Wednesday.

  • The SPDR Gold Shares (GLD) fell 0.9%.
  • The iShares Gold Trust (IAU) slid 0.8%.
  • The iShares Silver Trust (SLV) dipped 0.3%.

Mining ETFs declined during the day.

  • The Market Vectors Gold Miners ETF (GDX) dropped 1.6%.
  • The Market Vectors Junior Gold Miners ETF (GDXJ) slipped 0.9%.
  • The Global X Silver Miners ETF (SIL) waned 1.3%.

Gold stocks mostly pulled back on Wednesday.

  • Agnico-Eagle Mines (AEM) moved down 1.4%.
  • Barrick Gold (ABX) fell 1.7%.
  • Eldorado Gold (EGO) slumped 1.6%.
  • Goldcorp (GG) slipped 0.7%.
  • Kinross Gold (KGC) tumbled 2.2%.
  • Newmont Mining (NEM) rose 0.1%.
  • NovaGold Resources (NG) slid 1.3%.
  • Yamana Gold (AUY) dipped 0.5%.

Silver mining shares mostly retreated during the day.

  • Coeur d’Alene Mines (CDE) sank 1.9%.
  • Hecla Mining (HL) fell 2.2%.
  • Pan American Silver (PAAS) slipped 0.7%.
  • Silver Wheaton (SLW) dropped 1.9%.
  • Silver Standard Resources (SSRI) moved down 0.6%.

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/2013/12/gold-gains-fed-announces-tapering-plans/.

©2016 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.