Silver Logs Best Day in 7 Months, Despite QE Reduction Chatter
On Tuesday, gold (NYSEARCA:GLD) futures for June delivery, the most active contract, jumped $14.20 to close at $1,586.70 per ounce, while silver (NYSEARCA:SLV) futures for May gained 74 cents to finish at $27.88.
Gold closed at its best level in over a week, while silver posted it largest jump in seven months after short positions reached record-breaking highs earlier in the week. The move came in spite of St. Louis Federal Reserve Bank President James Bullard telling CNBC he would be willing to reduce quantitative easing in small increments.
Bullard claims, “You can adjust QE up or down. But the economy will most likely continue to improve and we’ll be in a position to slowly ratchet down the pace of purchases.”
By the end of the day, the SPDR Gold Trust (NYSEARCA:GLD) gained 0.80 percent, while the iShares Silver Trust (NYSEARCA:SLV) gained 2.7 percent. Gold miners (NYSEARCA:GDX) such as Yamana Gold (NYSE:AUY) and Newmont Mining (NYSE:NEM) jumped 4.4 percent and 2.6 percent, respectively. Shares of Endeavour Silver (NYSE:EXK) surged 8.3 percent.
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Disclosure: Long EXK, AG, HL, PHYS