Gold Holds Above $1,350, Federal Reserve to Keep QE at $85B
On Monday, gold (NYSEARCA:GLD) futures for December — the most active contract — edged 30 cents lower to close at $1,352.20 per ounce, while silver (NYSEARCA:SLV) futures declined 10 cents to finish at $22.54. Major exchange-traded funds, like the SPDR Gold Trust and iShares Silver Trust, finished the day mostly unchanged.
Gold and silver both held relatively steady on Monday as the economy continues to show signs of weakness. The Pending Home Sales Index, a forward-looking indicator based on contract signings, plunged 5.6 percent to 101.6 in September compared to a downwardly revised 107.6 in August, according to the National Association of Realtors. Making matters worse, pending home sales fell below their year-ago level for the first time in 29 months.
After posting its strongest pace since 2006 in May, the index has now declined for four consecutive months to reach its worst level since December. Economists expected the index to remain mostly unchanged.