Gold Gains Ahead of Fed Tapering Announcement
by Christopher Freeburn | January 29, 2014 4:38 pm
[1]Gold settled higher in Wednesday trading ahead of the conclusion of the Federal Reserve’s Federal Open Markets Committee meeting.
The Fed issued a statement during the afternoon indicating that it would further taper its monthly bond-buying by another $10 billion a month, beginning in February. Last month, the Fed cut its monthly stimulus from $85 billion to $75 billion. The latest move reduces Feb bond-buying to $65 billion a month. U.S. stock markets dropped sharply on the news.
Gold futures for February delivery rose 0.9% to $1,262.20 per ounce on Wednesday, according to CME Group[2]. Gold traded as high as $1,269.30 and as low as $1,248.30. Bullion closed in London at $1,269, according to BullionVault[3].
Silver futures for March delivery rose 0.2%, to $19.55 per ounce. Wednesday’s high for silver was $19.97, while the low was $19.45.
Metal funds improved on Wednesday.
- The SPDR Gold Shares (GLD[4]) climbed 1.3%.
- The iShares Gold Trust (IAU[5]) rose 1.2%.
- The iShares Silver Trust (SLV[6]) added 1.1%.
Mining ETFs advanced during the day.
- The Market Vectors Gold Miners ETF (GDX[7]) increased 2.7%.
- The Market Vectors Junior Gold Miners ETF (GDXJ[8]) surged 4.2%.
- The Global X Silver Miners ETF (SIL[9]) moved up 3.1%.
Gold stocks gained on Wednesday.
- Agnico-Eagle Mines (AEM[10]) rose 3.3%.
- Barrick Gold (ABX[11]) added 3.8%.
- Eldorado Gold (EGO[12]) jumped 4.3%.
- Goldcorp (GG[13]) increased 3.7%.
- Kinross Gold (KGC[14]) added 1.9%.
- Newmont Mining (NEM[15]) edged up 0.8%.
- NovaGold Resources (NG[16]) surged 5.8%.
- Yamana Gold (AUY[17]) advanced 2.9%.
Silver mining shares mostly moved higher during the day.
- Coeur d’Alene Mines (CDE[18]) fell 0.9%.
- Hecla Mining (HL[19]) gained 1.8%.
- Pan American Silver (PAAS[20]) rose 2.6%.
- Silver Wheaton (SLW[21]) added 0.7%.
- Silver Standard Resources (SSRI[22]) improved 2.6%.
As of this writing, Christopher Freeburn did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault[23] contributed to this report.
- [Image]: https://investorplace.com/wp-content/uploads/2011/10/PreciousMetalsRecap.gif
- CME Group: http://www.cmegroup.com
- BullionVault: http://www.bullionvault.com
- GLD: http://studio-5.financialcontent.com/investplace/quote?Symbol=GLD
- IAU: http://studio-5.financialcontent.com/investplace/quote?Symbol=IAU
- SLV: http://studio-5.financialcontent.com/investplace/quote?Symbol=SLV
- GDX: http://studio-5.financialcontent.com/investplace/quote?Symbol=GDX
- GDXJ: http://studio-5.financialcontent.com/investplace/quote?Symbol=GDXJ
- SIL: http://studio-5.financialcontent.com/investplace/quote?Symbol=SIL
- AEM: http://studio-5.financialcontent.com/investplace/quote?Symbol=AEM
- ABX: http://studio-5.financialcontent.com/investplace/quote?Symbol=ABX
- EGO: http://studio-5.financialcontent.com/investplace/quote?Symbol=EGO
- GG: http://studio-5.financialcontent.com/investplace/quote?Symbol=GG
- KGC: http://studio-5.financialcontent.com/investplace/quote?Symbol=KGC
- NEM: http://studio-5.financialcontent.com/investplace/quote?Symbol=NEM
- NG: http://studio-5.financialcontent.com/investplace/quote?Symbol=NG
- AUY: http://studio-5.financialcontent.com/investplace/quote?Symbol=AUY
- CDE: http://studio-5.financialcontent.com/investplace/quote?Symbol=CDE
- HL: http://studio-5.financialcontent.com/investplace/quote?Symbol=HL
- PAAS: http://studio-5.financialcontent.com/investplace/quote?Symbol=PAAS
- SLW: http://studio-5.financialcontent.com/investplace/quote?Symbol=SLW
- SSRI: http://studio-5.financialcontent.com/investplace/quote?Symbol=SSRI
- BullionVault: http://www.bullionvault.com/
Source URL: https://investorplace.com/2014/01/gold-gains-ahead-fed-tapering-announcement/