Gold and Silver Mixed After Fed Statement

On Tuesday, gold (NYSEARCA:GLD) futures for April delivery decreased $5.60 to settle at $1,694.20 per ounce, while silver (NYSEARCA:SLV) futures edged 17 cents higher to close at $33.56.

In today’s Federal Open Market Committee meeting, The Federal Reserve announced no change in record low interest rates.  Furthermore, the central bank said it will keep rates low until at least late 2014.  Due to the rise in oil and gas prices, inflation is expected to push higher, but only temporarily.  The economy is expected to expand moderately.

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The Fed statement also explained, “Labor market conditions have improved further; the unemployment rate has declined notably in recent months but remains elevated. Household spending and business fixed investment have continued to advance. The housing sector remains depressed…the unemployment rate will decline gradually toward levels that the Committee judges to be consistent with its dual mandate. Strains in global financial markets have eased, though they continue to pose significant downside risks to the economic outlook.”

In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) and iShares Silver Trust (NYSEARCA:SLV) both declined about .80 percent, but selling intensified after the Fed statement.  Gold miners (NYSEARCA:GDX) such as Yamana Gold (NYSE:AUY) and Newmont Mining (NYSE:NEM) declined nearly 1 percent.  Silver miners (NYSEARCA:SIL) such as Endeavour Silver (NYSE:EXK) dropped 1.13 percent, but Silvercorp Metals Inc. (NYSE:SVM) and Fortuna Silver (FSM) both gained about 1 percent.

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To contact the reporter on this story: Eric McWhinnie at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com