Both precious metals traded lower, despite the Federal Reserve reaffirming its promise to keep interest rates near zero through at least 2014. Nine out of 10 Fed officials voted to keep the current monetary policies in place.
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The Federal Open Market Committee statement explained, “To support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with its dual mandate, the Committee expects to maintain a highly accommodative stance for monetary policy. In particular, the Committee decided today to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that economic conditions-including low rates of resource utilization and a subdued outlook for inflation over the medium run-are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014.”
In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) traded flat, while the iShares Silver Trust (NYSEARCA:SLV) fell .97 percent. Gold miners (NYSEARCA:GDX) such as Goldcorp Inc. (NYSE:GG) and Yamana Gold (NYSE:AUY) increased 1.0 percent and 3.2 percent, respectively. Silver miners (NYSEARCA:SIL) such as Silvercorp Metals Inc. (NYSE:SVM) and Fortuna Silver (FSM) gained 1.2 percent and 2.2 percent, respectively.
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Disclosure: Long EXK, AG, HL, PHYS