Gold Gains Ahead of Fed Tapering Announcement

by Christopher Freeburn | January 29, 2014 4:38 pm

Gold Silver GLD IAU SLV[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.

Mining ETFs advanced during the day.

Gold stocks gained on Wednesday.

Silver mining shares mostly moved higher during the day.

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.

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