Gold and Silver Hold Steady Ahead of Ben Bernanke
On Tuesday, gold (NYSEARCA:GLD) futures for December delivery decreased $5.90 to settle at $1,669.70 per ounce, while silver (NYSEARCA:SLV) futures dipped 17 cents to close at $30.88. It was the first decline for silver in over a week.
Both precious metals were relatively quiet today, as investors await Ben Bernanke’s annual speech at the Federal Reserve Bank of Kansas City’s meeting in Jackson Hole, Wyoming on Friday. At the same event two years ago, the Fed Chairman hinted at the second round of Quantitative Easing.
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At this year’s meeting, many are expecting more jawboning tactics like the ones seen in the Fed’s recent FOMC minutes release, and fewer hints of additional easing. “The minutes were consequential and we don’t expect Bernanke to take it further than what the minutes said,” El- Erian, the co-chief investment officer of the world’s largest manager of bond funds, told Bloomberg. “It’s highly probable that he will outline the options that the Fed has available and the commitment to do more if needed.”
In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) edged 0.22 percent higher, while the iShares Silver Trust (NYSEARCA:SLV) increased 0.62 percent. Gold miners (NYSEARCA:GDX) such as Barrick Gold (NYSE:ABX) and Goldcorp (NYSE:GG) gained 1 percent and 0.50 percent, respectively. Silver names such as Endeavour Silver (NYSE:EXK) and Silver Wheaton (NYSE:SLW) declined 1.16 percent and 0.65 percent, respectively.
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Disclosure: Long EXK, AG, HL, PHYS