Both precious metals finished well-off their lows for the day after the market weighed the Federal Reserve’s most recent statement. The central bank announced today that it would extend its holdings of long-term government bonds by $267 billion in an effort to bring down borrowing costs and boost the economy.
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Although the Fed did not announce another asset purchasing program, it did keep the option on the table. “The Committee is prepared to take further action as appropriate to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability,” the Fed said in its statement.
In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) dipped .79 percent, while the iShares Silver Trust (NYSEARCA:SLV) fell 1.23 percent. Gold miners (NYSEARCA:GDX) such as Yamana Gold Inc. (NYSE:AUY) and Goldcorp Inc. (NYSE:GG) dropped 2.43 percent and 1.12 percent, respectively. Silver names such as Silver Wheaton (NYSE:SLW) and Coeur d’Alene Mines Corp. (NYSE:CDE) declined 1.50 percent and 2.35 percent, respectively.
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Disclosure: Long EXK, AG, HL, PHYS