The FED Provides a BOOST for Gold and Silver

Wall St. Cheat Sheet

On Wednesday, gold (NYSEARCA:GLD) futures for December delivery decreased $2.40 to settle at $1,640.50 per ounce, while silver (NYSEARCA:SLV) futures edged 13 cents higher to close at $29.56. It was silver’s six consecutive trading day of gains.

Both precious metals received a boost later in the day after the Federal Reserve released its minutes from the July 31-August 1 policy meeting. The central bank did not take immediate action today, but rather hinted of more easing to come.

Continue Reading Below

Don’t Miss: Do Hedge Funds Still Have Faith in GOLD?

“Many members judged that additional monetary accommodation would likely be warranted fairly soon unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery,” the minutes said.

By the end of the day, the SPDR Gold Trust (NYSEARCA:GLD) gained 1.08 percent, while the iShares Silver Trust (NYSEARCA:SLV) closed nearly 2 percent higher. Gold miners (NYSEARCA:GDX) such as Yamana Gold (NYSE:AUY) and Goldcorp (NYSE:GG) jumped 3.82 percent and 2.75 percent, respectively. Meanwhile, First Majestic Silver (NYSE:AG) and Hecla Mining (NYSE:HL) increased 3.01 percent and 2.53 percent, respectively.

Investor Insight: Are Central Banks Still Hoarding Gold?

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