Gold and Silver JUMP on More QE Hopes
Both precious metals outperformed the market, as the U.S. dollar broke its five-day winning streak against the euro currency. A recent article by the WSJ hints that the Federal Reserve could soon take more action, such as launching another round of quantitative easing or extending low interest rates beyond 2014.
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Jon Hilsenrath writes, “Amid the recent wave of disappointing economic news, conversation inside the Fed has turned more intensely toward the questions of how and when to move. Central bank officials could take new steps at their meeting next week, July 31 and Aug. 1, though they might wait until their September meeting to accumulate more information on the pace of growth and job gains before deciding whether to act.”
By the end of the day, the SPDR Gold Trust (NYSEARCA:GLD) closed 1.40 percent higher, while the iShares Silver Trust (NYSEARCA:SLV) logged a gain of 1.18 percent. Newmont Mining (NYSE:NEM) and Goldcorp (NYSE:GG) both settled more than 3 percent higher. Meanwhile, silver miners (NYSEARCA:SIL) such as Endeavour Silver (NYSE:EXK) and First Majestic (NYSE:AG) surged 5.98 percent and 6.15 percent, respectively.
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Disclosure: Long EXK, AG, HL, PHYS