Gold and Silver Receive Boost from Currency War Shots

  • Rate this Story
  • 0
  • 0

January 23, 2013 7:12 AM EST

Wall St. Cheat Sheet

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.

  • Rate this Story
  • 0
  • 0
The article was first published by Wall St. Cheat Sheet and does not represent the views or opinions of International Business Times.

Join the Conversation

IBTimes TV

We value your privacy. Your email address will not be shared.