The largest exchange traded fund (ETF) for silver jumped nearly 7% on Wednesday after the Federal Reserve raised its inflation forecast and Fed Chairman Ben Bernanke’s much-hyped press conference.
The iShares Silver Trust (NYSEArca: SLV) rose almost 7% in late-day trading after the Fed reiterated its pledge to keep interest rates low to help the economy.
Precious-metals bulls had a field day Wednesday as gold prices touched $1,530 an ounce to a new record high. SPDR Gold Shares (NYSEArca: GLD) rallied about 2%.
“The Fed admits that inflation is going up but at the same time they don’t seem to be in a big hurry to do much about it. [The central bank] is willing to error on the side of higher inflation and isn’t ready to end its accommodative money policies,” a U.S.-based gold trader told FastMarkets.
An ETF that follows the dollar’s movement versus a basket of foreign currencies fell to a new 52-week low Wednesday. [Dollar ETF Plumbs New Low as Fed Cuts Growth Outlook.]
iShares Silver Trust
Full disclosure: Tom Lydon’s clients own GLD and SLV.
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