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Gold Prices Catapult As Fed Opts To Not Taper QE3; Siler Prices Also Surge

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Gold prices clocked sharp gains on Thursday as the demand for non-interest bearing assets swelled after the Federal Reserve staggered global investors by not announcing any immediate pullback of its economic stimulating measures. Silver prices also surged in trading on Thursday.

At last check, gold futures for December delivery climbed 4.60% to $1,367.60 an ounce while spot gold was trading at $1,366.74 an ounce.

Gold logged its biggest session gain on Thursday since June 2012.

SPDR Gold Trust (ETF) (NYSE: GLD) inched down 0.08% to $132.05.

It was widely expected that the Federal Reserve would eventually decide to scale down its bond purchase program by $10 billion from September; however, the bank’s Chairman, Ben Bernanke following the FOMC said that the program (bond buying) is “not a on a preset course”.

Commenting over the Fed’s decision to maintain its economic stimulating measures and its effect on bullion prices, Afshin Nabavi, head of trading at MKS, said  “The market is still digesting the surprise news,… I personally think the numbers we are seeing out of the States are still poor, and QE may remain in place for a bit longer. If my reasoning is correct, gold ought to see a bigger boost on the up side,” according to Reuters.

Nabavi expects that bullion prices will hover in the range of $1,350 to $1,385, in next session or two.

Silver futures leaped 7.96% to $23.28 an ounce.

In late trading, the iShares Silver Trust (ETF) (NYSE: SLV) was up 0.09% to $22.33, and the ProShares Ultra Silver (ETF) (NYSE: AGQ) was up 0.31% to $23.01.








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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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