by Christopher Freeburn | December 18, 2013 5:03 pm
Gold 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.
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.
Mining ETFs declined during the day.
Gold stocks mostly pulled back on Wednesday.
Silver mining shares mostly retreated during the day.
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.
Source URL: http://investorplace.com/2013/12/gold-gains-fed-announces-tapering-plans/
Short URL: http://invstplc.com/1fpYsXu
Copyright ©2016 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.