Gold and Silver Hold Steady Amid Fed Chatter, Indian Imports

Wall St. Cheat Sheet

On Monday, gold (NYSEARCA:GLD) futures for June delivery, the most active contract, dipped $2.30 to close at $1,434.30 per ounce, while silver (NYSEARCA:SLV) futures for July edged 4 cents higher to finish at $23.70.

Both precious metals were relatively flat, despite Jon Hilsenrath — long considered to be the Fed’s mouthpiece — writing a piece that the central bank is working on a plan to slow its monthly bond purchases.

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Hilsenrath writes, “Federal Reserve officials have mapped out a strategy for winding down an unprecedented $85 billion-a-month bond-buying program meant to spur the economy — an effort to preserve flexibility and manage highly unpredictable market expectations. Officials say they plan to reduce the amount of bonds they buy in careful and potentially halting steps, varying their purchases as their confidence about the job market and inflation evolves. The timing on when to start is still being debated.”

On the bullish side, India’s total imports in April jumped nearly 11 percent to $41.95 billion, with gold and silver accounting for $7.5 billion of total imports, according to data released by the Indian government. In comparison, the two precious metals accounted for only $3.1 billion a year earlier.

By the end of the day, the SPDR Gold Trust (NYSEARCA:GLD) fell 0.84 percent, while the iShares Silver Trust (NYSEARCA:SLV) declined 0.65 percent. Gold miners (NYSEARCA:GDX) such as Barrick Gold (NYSE:ABX) and Yamana Gold (NYSE:AUY) both dropped by nearly 3 percent. Shares of First Majestic Silver (NYSE:AG) decreased 3.3 percent.

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Disclosure: Long EXK, AG, HL, PHYS

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