Gold and Silver Bounce After FOMC Statement

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On Wednesday, gold (NYSEARCA:GLD) futures for December delivery fell 7.80 to settle at $1,701.60 per ounce, while silver (NYSEARCA:SLV) dropped 17 cents to close at $31.62.

Both precious metals reached intra-day lows ahead of the Federal Open Market Committee minutes, but rebounded after the statement was released. The central bank is still more than willing to keep its foot on the monetary gas pedal.

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The statement explains, “Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability.  The Committee remains concerned that, without sufficient policy accommodation, economic growth might not be strong enough to generate sustained improvement in labor market conditions.  Furthermore, strains in global financial markets continue to pose significant downside risks to the economic outlook.”

By the end of the trading day, the SPDR Gold Trust (NYSEARCA:GLD) closed 0.34 percent lower, while the iShares Silver Trust (NYSEARCA:SLV) edged slightly higher. Gold miners (NYSEARCA:GDX) such as Yamana Gold (NYSE:AUY) and Barrick Gold (NYSE:ABX) declined 1.92 percent and 1.13 percent, respectively. Silver names such as First Majestic Silver (NYSE:AG) and Silver Wheaton (NYSE:SLW) both fell more than 2 percent.

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Disclosure: Long EXK, AG, HL, PHYS

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