Gold and Silver Hold Steady Amid QE Chatter
Both precious metals were relatively quiet in today’s trading, despite more quantitative easing chatter. Eric Rosengren, president of the Federal Reserve Bank of Boston, believes the central bank should launch an open-ended bond buying program that would continue until economic conditions improve. His announcement came during an interview with the Wall Street Journal.
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“His decision to speak out forcefully is a sign of the momentum building inside the Fed for a new phase of action. A bond-buying program, also known as quantitative easing, would aim to drive down long-term interest rates, drive up stocks and push down the value of the dollar, which many officials believe would spur activity,” explains Jon Hilsenrath. On Tuesday morning, the U.S. dollar index hit as low as 82.04.
In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) traded flat, while the iShares Silver Trust (NYSEARCA:SLV) edged 0.56 percent higher. Gold miners (NYSEARCA:GDX) such as Barrick Gold (NYSE:ABX) and Goldcorp (NYSE:GG) jumped 1.65 percent and 2.14 percent, respectively. Silver Wheaton (NYSE:SLW) increased 1.45 percent, but Endeavour Silver (NYSE:EXK) slipped nearly 2 percent.
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Disclosure: Long EXK, AG, HL, PHYS