On Tuesday, gold (NYSEARCA:GLD) futures for February delivery, the most active contract, decreased $4.80 to settle at $1,709.60 per ounce, while silver (NYSEARCA:SLV) futures for March declined 36 cents to close at $33.02.
Both precious metals edged lower as investors wait for Wednesday’s conclusion of the Federal Reserve’s two-day meeting. The central bank is expected to announce another bond buying program to replace Operation Twist, which expires at the end of the year.
In the previous Federal Open Market Committee, the Fed explains, “Looking ahead, a number of participants indicated that additional asset purchases would likely be appropriate next year after the conclusion of the maturity extension program in order to achieve a substantial improvement in the labor market.” According to a Bloomberg survey, 48 of 49 economists say the central bank will provide more easing measures.
In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) edged 0.15 percent lower, while the iShares Silver Trust (NYSEARCA:SLV) fell 0.90 percent. Barrick Gold (NYSE:ABX) traded mostly flat, while Newmont Mining (NYSE:NEM) gained 0.50 percent. Silver names such as Endeavour Silver (NYSE:EXK) and Hecla Mining (NYSE:HL) were also mostly unchanged.
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Disclosure: Long EXK, AG, HL, PHYS