June 20: Gold and Silver End Lower In Mixed Trade after Fed
Gold fell $28.82 to as low as $1590.78 just after the fed’s announcement before it climbed back above $1620 over the next couple of hours of trade, but it then fell back off into the close and ended with a loss of 0.82%. Silver slipped to $27.73 just after the fed’s announcement before it also bounced back higher, but it then dropped again in late trade and ended with a loss of 1.23%.
Euro gold fell to about €1266, platinum lost $19.50 to $1455, and copper fell 6 cents to about $3.37.
Gold and silver equities fell over 2% in the first 40 minutes of trade before they rose to see about 1% gains after the fed’s announcement, but they then fell back off again in late trade and ended with almost 1% losses.
Mortgage-application volume slipped 1.3%: MBA MarketWatch
The fed extended operation twist by $267 billion and through the end of the year, but announced no other substantial changes to their policy. While they did not announce QE3 as some had suspected, they did note that growth in employment has slowed and inflation has declined – both of which are conditions that would welcome a new round of quantitative easing in the future.
“The Federal Reserve will expand its program to replace short-term bonds with longer-term debt by $267 billion through the end of the year in a bid to reduce unemployment and protect the expansion.
The continuation of Operation Twist “should put downward pressure on longer-term interest rates and help to make broader financial conditions more accommodative,” the Federal Open Market Committee said today in a statement at the conclusion of a two-day meeting in Washington.
The Fed said it is “prepared to take further action as appropriate to promote a stronger economic recovery and sustain improvement in labor market conditions in a context of price stability.”
Policy makers led by Chairman Ben S. Bernanke are taking steps to shore up the world’s largest economy as faltering growth leaves it vulnerable to fallout from the European debt crisis and looming fiscal tightening in the U.S. Payrolls expanded at the slowest pace in a year in May, and the jobless rate has been stuck above 8 percent since February 2009.”
Tomorrow brings Initial Jobless Claims, Existing Home Sales, the Philadelphia Fed, Leading Economic Indicators, and the FHFA Housing Price Index.
Charts Courtesy of http://finance.yahoo.com/
Oil fell to a new 8 month low on worries about Europe and world economic growth.
The U.S. dollar index traded mostly slightly lower before the fed, but it then bounced back higher after the fed and ended with a modest gain.
Treasuries fell ahead of the fed and remained lower afterwards.
The Dow, Nasdaq, and S&P waffled near unchanged prior to the fed’s announcement and rose to new session highs at one point following it, but they then fell back off again in late trade and ended mixed.
Among the big names making news in the market today were JPMorgan, P&G, Navistar, News Corp., and Burger King.
As of close of business: 6/19/2012
Gold Warehouse Stocks:
Silver Warehouse Stocks:
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
New York Stock Exchange Arca (NYSE Arca) AND Singapore Exchange (SGX) AND Tokyo Stock Exchange (TSE) AND Hong Kong Stock Exchange (HKEx)
SPDR® Gold Shares
London Stock Exchange (LSE) AND NYSE Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse - Xetra)
Gold Bullion Securities
London Stock Exchange (LSE) AND NYSE Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse - Xetra) AND NYSE Euronext Amsterdam
ETFS Physical Gold
Australian Stock Exchange (ASX)
Gold Bullion Securities
Johannesburg Securities Exchange (JSE)
New Gold Debentures
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 181.70: No change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 9,821.45: +16.60 change from yesterday’s data.
Royal Gold’s (RGLD) closed notes offering, IAMGOLD’s (IAG) dividend, and Yale’s (YLL.V) property sale to Penoles were among the big stories in the gold and silver mining industry making headlines today.
TGD +6.36% $1.84
JAG +4.65% $1.35
2. Golden Star
GSS -4.88% $1.17
Winners & Losers tracks NYSE and AMEX listed gold and silver mining stocks that trade over $1.
Please see Yahoo’s Mining/Metals News Wire for all of today’s mining news.
- Chris Mullen, Gold Seeker Report
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