Precious Metals Hold Steady as Stocks Extend Winning Streak

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On Wednesday, gold (NYSEARCA:GLD) futures for December — the most active contract — fell 20 cents to close at $1,363.80 per ounce, while silver (NYSEARCA:SLV) futures increased 16 cents to finish at $23.17.

Both precious metals were relatively quiet as stocks continued to rebound from a dismal August. The Dow Jones Industrial Average (NYSEARCA:DIA) jumped 135 points to log its third consecutive day of triple-digit gains. Meanwhile, the S&P 500 (NYSEARCA:SPY) climbed higher for the seventh consecutive trading session.

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The rally comes a day after President Obama addressed the nation about the situation in Syria. He said the world should not accept the use of chemical weapons and determined that the United States should respond with a “targeted military strike.” However, Obama is still leaving a more peaceful resolution on the table, for now.

“That’s my judgment as commander-in-chief,” he said. “But I’m also the president of the world’s oldest constitutional democracy. So even though I possess the authority to order military strikes, I believed it was right, in the absence of a direct or imminent threat to our security, to take this debate to Congress. I believe our democracy is stronger when the president acts with the support of Congress. And I believe that America acts more effectively abroad when we stand together.”

By the end of the trading day Wednesday, shares of the SPDR Gold Trust (NYSEARCA:GLD) closed flat, while the iShares Silver Trust (NYSEARCA:SLV) increased 0.8 percent. Gold miners (NYSEARCA:GDX) Barrick Gold (NYSE:ABX) and Yamana Gold (NYSE:AUY) both gained more than 1 percent. Shares of Hecla Mining (NYSE:HL) jumped nearly 2 percent.

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Disclosure: Long EXK, AG, HL, PHYS

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