| Bullions End the Day Positive as the Fed Eyes December | |
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Key for Investors: Is Gold Driving the Fed's Decisions? Precious metals rose
Gold futures for December delivery trading on COMEX, the commodity division of NYMEX, rose on Wednesday. They touched a high of $1,183.10 per ounce. It’s the highest level in about a week. The futures closed 0.88% higher than the previous day’s close. All of the precious metals saw an up day on Wednesday as the FOMC (Federal Open Market Committee) policy-setting meeting came to an end.
Silver futures rose 2.70% and entered the $16 territory once again. It settled at ~$16.30 per ounce. Platinum and palladium futures also closed positive. They rose 2.40% and 1.10%, respectively.
The above chart for gold shows a reasonably good rising and falling movement on October 28, 2015.
Less dovish stance
Experts and most traders were expecting a “dovish” stance from the October meeting. However, the outcome was a bit on the “hawkish” side. The committee decided to keep interest rates close to zero. It also indicated in its statement that in its next meeting in mid-December it would focus on whether to raise the rates. Before there was any news from the Fed, gold rose almost $10. Shortly after the news, gold fell sharply to $1,162 per ounce.
The CME Group is now showing investors pricing a 47% chance of a rate increase at the December meeting. Investors will likely keep a close watch on the upcoming data from the US so that they can decipher the Fed’s next move.
Gold-backed ETFs like the SPDR Gold Shares ETF (GLD) and the iShares Gold Trust ETF (IAU) both lost 0.8% on Wednesday. Most mining companies also ended the day on a negative note. Companies like Gold Fields (GFI), Aurico Gold (AUQ), and Sibanye Gold (SBGL) lost 5.70%, 2.80%, and 1.60%, respectively. Together, these three companies account for 7% of the price changes in the Market Vectors Gold Miners ETF (GDX). GDX witnessed a fall of 0.94% on October 28.
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VanEck Vectors Global Alternative Energy ETF
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PRODUCER |
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CODE : GFI |
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ISIN : US38059T1060 |
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Gold Fields is a gold producing company based in South africa. Gold Fields produces gold, copper in Australia, in Ghana, in Peru and in South Africa, develops gold in Mali, and holds various exploration projects in Peru. Its main assets in production are ST IVES MINE and AGNEW in Australia, BEATRIX MINE, DRIEFONTEIN, KLOOF MINE, SOUTH DEEP, KLOOF and BEATRIX in South Africa, DAMANG, TARKWA and DAMANG PROJECT in Ghana and CERRO CORONA in Peru, its main asset in development is KOMANA in Mali and its main exploration properties are LOBO in Philippines and CHUCAPACA and CANAHUIRE in Peru. Gold Fields is listed in France, in South Africa and in United States of America. Its market capitalisation is 715.9 millions as of today (€ 652.1 millions). Its stock quote reached its lowest recent point on November 10, 2000 at 1.69, and its highest recent level on October 09, 2024 at 15.09. Gold Fields has 47 442 200 shares outstanding. |