Gold and Silver Wait Patiently for QE4

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.

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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.

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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