Gold and Silver Struggle, Fed Whisperer Says Low Interest Rates Here to Stay
On Thursday, gold (NYSEARCA:GLD) futures for August delivery, the most active contract, fell $14.20 to close at $1,377.80 per ounce, while silver (NYSEARCA:SLV) futures for July decreased 21 cents to finish at $21.58.
Both precious metals declined as stocks rebounded from a three-day losing streak. In fact, all three major indices rallied more than 1 percent. The Dow Jones Industrial Average jumped 181 points, while the S&P 500 gained nearly 24 points. The Nasdaq increased 45 points.
Stocks across the board received a late-afternoon lift as Jon Hilsenrath — considered to be a mouthpiece for the Federal Reserve — published an article for the WSJ saying the central bank is likely to push back expectations of a rate increase. He also reminded the market that any adjustment in the Fed’s monthly bond-buying programs will not automatically lead to a complete withdrawal.
While low interest rates are typically a positive for precious metals, the SPDR Gold Trust (NYSEARCA:GLD) closed 0.40 percent in the red, while iShares Silver Trust (NYSEARCA:SLV) managed a slight gain. However, gold miners (NYSEARCA:GDX) such as Newmont Mining (NYSE:NEM) and Yamana Gold (NYSE:AUY) both increased about 1 percent. Shares of Endeavour Silver (NYSE:EXK) jumped 1.7 percent.
Don’t Miss: 5 Simple Ways to Control Your Credit Card Debt
If you would like to receive professional analysis on miners and other precious metal investments, we invite you to try our premium service free for 14 days.
Disclosure: Long EXK, AG, HL, PHYS
Follow Eric on Twitter (@Mr_Eric_WSCS)