Gold and Silver Receive Boost from Currency War Shots
January 23, 2013 7:12 AM EST
On Tuesday, gold ( for February delivery, the most active contract, increased $6.20 to settle at $1,693.20 per ounce, while silver (NYSEARCA:SLV) futures for March rose 25 cents to close at $32.18.
Both precious metals showed strength as the Bank of Japan fires more shots in the global currency war. The central bank doubled its inflation target to 2 percent and made a commitment to start open-ended monetary easing next year. The BOJ has been under pressure from new Prime Minister Shinzo Abe for stronger monetary actions. Seven of the nine board members voted for the new inflation target.
Starting in 2014, the BOJ will purchase 13 trillion yen in assets each month, including 2 trillion yen in long-term government bonds and 10 trillion yen in treasury discount bills.
In a statement, the bank explains, “The BOJ will pursue powerful monetary easing by maintaining virtually zero interest rates and purchases of assets as long as it deems appropriate.” The decision echoes the moves made by other central banks such as the Federal Reserve and European Central Bank.
In afternoon , the SPDR Gold Trust (NYSEARCA:GLD) increased 0.55 percent, while the iShares Silver Trust (NYSEARCA:SLV) jumped 1.35 percent. Gold miners such as Barrick Gold (NYSE:ABX) and Yamana Gold (NYSE:AUY) surged 2.45 percent and 5.05 percent, respectively. Silver miners (NYSEARCA:SIL) such as Endeavour Silver (NYSE:EXK) and Hecla Mining (NYSE:HL) both gained more than 1 percent.
Copyright Gold Alert All rights reserved.
Most Popular Slideshows
- 2014 MTV Video Music Awards: Full List Of Winners, Miley Cyrus ‘Wrecking Ball’ Bags Video Of The Year [PHOTOS]
- Top 5 Richest Tennis Athletes
- Kate Middleton’s Mom Accused Of Being A Social Climber, Prince George Not Seen By Relatives
- Kate Middleton First Official Solo Trip: Details For Malta Tour Revealed [PHOTOS]
Join the Conversation
- Worldwide Appetite for Gold Slumps 16% in 2Q 2014 – WGC
- Gold in China: 127-Tonne Gold Reserves Tapped in Xinjiang
- Global Markets Overview – July 15, 2014
- Honduran Gold Mine Caves in; 8 Rescued, 3 Remain Trapped (PHOTOS)
- Chinese Govt Tightens Control on Gold to Curb Imports, Could Drop 400T from 2013 – Report
- Why Moto X is Not the Best Smartphone to Purchase Now?
- Nexus 6 Release Date Will Intro Android 5.0 aka Lemon Meringue Pie with Killer Specs & Features
- Hundreds of Men Rape Teen for Three Years
- Apple iPhone 6 Release Date Two Weeks to Go Starting at $800 with New Phosphorus HealthKit Chip
- Samsung Galaxy S5 Mini vs. LG G3 S (aka LG G3 Beat, LG G3 Mini) – Specs, Features And Price Showdown
- iPhone 6 Release Date Update: 4.7-Inch Model Scores 65.8% In Screen-To-Size Ratio; A Surprise Entry Scales Top Spot [List Attached]
- Bill Shorten Calls Tony Abbott 'Ineligible' To Lead Australia; Government Party-Room Leaks On Abbott'sTravel Entitlements