Gold and Silver Dip After FED Minutes Go Public
Although gold and silver contracts closed mostly flat, both precious metals took a dip after the Federal Reserve released its Federal Open Market Committee minutes from the June meeting and did not give any definite hints of more easing. However, a few policy makers said the central bank will probably need to take further action to boost employment and inflation. “A few members expressed the view that further policy stimulus likely would be necessary to promote satisfactory growth in employment and to ensure that the inflation rate would be at the Committee’s goal,” according to the statement.
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The Fed minutes also expressed concerns about growth. “The information reviewed at the June 19-20 meeting suggested that economic activity was expanding at a somewhat more modest pace than earlier in the year. Improvements in labor market conditions slowed in recent months, and the unemployment rate remained elevated,” according to the FOMC statement.
In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) edged 0.35 percent higher, while the iShares Silver Trust (NYSEARCA:SLV) increased 0.63 percent. Gold miners (NYSE:ABX) such as Yamana Gold (NYSE:AUY) and Barrick Gold (NYSE:ABX) both dropped more than 2 percent. Meanwhile, silver miners (NYSEARCA:SIL) such as First Majestic Silver (NYSE:AG) and Endeavour Silver (NYSE:EXK) fell 0.42 percent and 0.95 percent, respectively.
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Disclosure: Long EXK, AG, HL, PHYS