QE3 PUSHES Gold and Silver to Best Weekly Finish in Months
On Friday, gold (NYSEARCA:GLD) futures for December delivery edged 60 cents higher to settle at $1,772.70 per ounce, while silver (NYSEARCA:SLV) ticked 12 lower cents to close at $34.66. It was the highest weekly close for gold since February, and the highest for silver since March.
Both precious metals closed out the week near multi-month highs following a large surge the previous day. On Thursday, the Federal Reserve announced QE3, an unlimited program to purchase agency mortgage-backed securities at a pace of $40 billion each month for as long as the central bank feels is necessary.
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Goldcore explains, “Bernanke’s QE3, which should be known as Currency Debasement 3, means the dollar, the euro, the pound and all fiat currencies in our current fiat based monetary system will continue to fall in value versus gold, silver and the precious metals.”
In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) increased 0.20 percent, while the iShares Silver Trust (NYSEARCA:SLV) edged 0.25 percent lower. Although bullion prices were relatively calm, gold miners (NYSEARCA:GDX) such as Barrick Gold (NYSE:ABX) and Goldcorp (NYSE:GG) both jumped nearly 2 percent. Silver names such as First Majestic Silver (NYSE:AG) and Silver Wheaton (NYSE:SLW) popped 2.45 percent and 2.91 percent, respectively.
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Disclosure: Long EXK, AG, HL, PHYS