Gold and silver shares turned sharply higher Wednesday afternoon alongside precious metals as financial markets digested the latest Fed minutes.
The Philadelphia Gold & Silver Index (XAU) – which earlier fell as much as 0.8% to 163.00 – rose by 2.2% to 168.04 in afternoon trading. The stocks were bolstered by precious metals, as gold futures jumped $14.80, or 0.9%, to $1,657.70 per ounce while silver added $0.40, or 1.4%, to $29.83 per ounce.
With today’s strength, the XAU reached its best level since June 20th and extended its gain in August to 11.4%.
Within the XAU, three of the best performing components this afternoon were Harmony Gold (HMY), Hecla Mining (HL), and Kinross Gold (KGC). HMY advanced by 2.2% to $9.74, HL by 2.7% to $5.27, and KGC by 2.5% to $8.72 per share.
Precious metals rallied while the U.S. dollar tumbled after the Federal Reserve noted in the Fed minutes that “Many members judged that additional monetary accommodation would likely be warranted fairly soon unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery.”
In addition, the Fed minutes stated that several central bankers feel that there is “substantial capacity” for further asset purchases.
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