Fed President Says No Bond Taper Yet, Precious Metals Climb Higher
On Monday, gold (NYSEARCA:GLD) futures for December — the most active contract — increased $1.20 to close at $1,315.80 per ounce, while silver (NYSEARCA:SLV) futures jumped 37 cents to finish at $22.28. Major exchanged-traded funds, like the SPDR Gold Trust and iShares Silver Trust, also finished the day in positive territory.
Gold and silver both received buying support as the Federal Reserve does not appear likely to dial down monthly bond purchases at its policy meeting next week. Chicago Fed President Charles Evans recently told CNBC that the central bank may not scale back the $85 billion-per-month purchases for a few months, as the government shutdown injected even more uncertainty into the economy.
“October is a tough one. December? I think we need a couple of good labor reports and evidence of increasing growth, GDP growth,” said Evans. “It’s probably going to take a few months to sort that out.” He also added, “We could go on for as long as necessary, especially if we were in a period of falling inflation.”