Gold gained for a fifth consecutive session after new Federal Reserve Chair Janet Yellen told congress that the Fed would continue to taper its monthly bond-buying, suggesting that the central bank anticipates future U.S. economic growth. Yellen’s comments also sent U.S. stock markets higher.
Yellen’s comments were delivered before the House Financial Services Committee. Markets were also bolstered during the day after Congressional Republicans dropped opposition to a “clean” bill to raise the U.S. debt limit, avoiding another potentially-crippling fiscal showdown with the White House.
Gold futures for April delivery jumped 1.2% to $1,289.80 per ounce on Tuesday, according to CME Group. Gold traded as high as $1,294.40 and as low as $1,273.50. Bullion closed in London at $1,292, according to BullionVault.
Silver futures for March delivery inched up 0.2% to $20.15 per ounce. Tuesday’s high for silver was $20.29, while the low was $19.92.
Metal funds moved higher on Tuesday.
- The SPDR Gold Shares (GLD) added 1.2%.
- The iShares Gold Trust (IAU) increased 1.2%.
- The iShares Silver Trust (SLV) rose 0.8%.
Mining ETFs jumped during the day.
- The Market Vectors Gold Miners ETF (GDX) gained 3.8%.
- The Market Vectors Junior Gold Miners ETF (GDXJ) climbed 4.7%.
- The Global X Silver Miners ETF (SIL) surged 4.4%.
Gold stocks improved on Tuesday.
- Agnico-Eagle Mines (AEM) edged up 0.4%.
- Barrick Gold (ABX) added 1.5%.
- Eldorado Gold (EGO) advanced 3.4%.
- Goldcorp (GG) gained 2.9%.
- Kinross Gold (KGC) surged 5.5%.
- Newmont Mining (NEM) rose 3.2%.
- NovaGold Resources (NG) increased 3.7%.
- Yamana Gold (AUY) moved up 5.2%.
Silver mining shares soared during the day.
- Coeur d’Alene Mines (CDE) climbed 4.2%.
- Hecla Mining (HL) rose 3.8%.
- Pan American Silver (PAAS) added 3.9%.
- Silver Wheaton (SLW) gained 3.9%.
- Silver Standard Resources (SSRI) increased 2.1%.
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.