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Gold Gains Ahead of Fed Tapering Announcement

Silver edged up and miners mostly moved higher


Gold Silver GLD IAU SLVGold 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.

Trade of the Day: Market Vectors Gold Juniors ETF (GDXJ)
Trade of the Day: Market Vectors Gold Juniors ETF (GDXJ)

Gold futures for February delivery rose 0.9% to $1,262.20 per ounce on Wednesday, according to CME Group. 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.

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) climbed 1.3%.
  • The iShares Gold Trust (IAU) rose 1.2%.
  • The iShares Silver Trust (SLV) added 1.1%.

Mining ETFs advanced during the day.

  • The Market Vectors Gold Miners ETF (GDX) increased 2.7%.
  • The Market Vectors Junior Gold Miners ETF (GDXJ) surged 4.2%.
  • The Global X Silver Miners ETF (SIL) moved up 3.1%.

Gold stocks gained on Wednesday.

  • Agnico-Eagle Mines (AEM) rose 3.3%.
  • Barrick Gold (ABX) added 3.8%.
  • Eldorado Gold (EGO) jumped 4.3%.
  • Goldcorp (GG) increased 3.7%.
  • Kinross Gold (KGC) added 1.9%.
  • Newmont Mining (NEM) edged up 0.8%.
  • NovaGold Resources (NG) surged 5.8%.
  • Yamana Gold (AUY) advanced 2.9%.

Silver mining shares mostly moved higher during the day.

  • Coeur d’Alene Mines (CDE) fell 0.9%.
  • Hecla Mining (HL) gained 1.8%.
  • Pan American Silver (PAAS) rose 2.6%.
  • Silver Wheaton (SLW) added 0.7%.
  • Silver Standard Resources (SSRI) improved 2.6%.

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,

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