Remarks from a Federal Reserve bank president tempered fears that the central bank might continue to cut back its monthly stimulus, sending gold higher in Friday trading. The metal ended the week up 0.4%.
The president of the Federal Reserve Bank of Minneapolis told the Financial Times that government agencies “need to do more” to support economic growth. He added that the Fed was “running the risk of being content with inflation running consistently below our target.” The central bank began tapering its monthly bond-buying last month, cutting its monthly stimulus by $10 billion.
Gold futures for February delivery gained 0.9% to $1,251.90 per ounce on Friday, according to CME Group. Gold traded as high as $1,254.60 and as low as $1,237.30. Bullion closed in London at $1,251, according to BullionVault.
Silver futures for March delivery climbed 1%, to $20.30 per ounce. Friday’s high for silver was $20.43, while the low was $19.96.
Metal funds advanced on Friday.
- The SPDR Gold Shares (GLD) rose 1%.
- The iShares Gold Trust (IAU) increased 1%.
- The iShares Silver Trust (SLV) added 0.9%.
Mining ETFs surged during the day.
- The Market Vectors Gold Miners ETF (GDX) climbed 3.1%.
- The Market Vectors Junior Gold Miners ETF (GDXJ) jumped 5.9%.
- The Global X Silver Miners ETF (SIL) gained 2.8%.
Gold stocks improved on Friday.
- Agnico-Eagle Mines (AEM) rose 3.2%.
- Barrick Gold (ABX) added 3.1%.
- Eldorado Gold (EGO) increased 4.9%.
- Goldcorp (GG) moved up 3.9%.
- Kinross Gold (KGC) jumped 4.4%.
- Newmont Mining (NEM) advanced 2.5%.
- NovaGold Resources (NG) climbed 4.2%.
- Yamana Gold (AUY) gained 3.1%.
Silver mining shares moved up during the day.
- Coeur d’Alene Mines (CDE) added 1.6%.
- Hecla Mining (HL) increased 1.6%.
- Pan American Silver (PAAS) improved 2.3%.
- Silver Wheaton (SLW) advanced 2.3%.
- Silver Standard Resources (SSRI) jumped 5%.
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.