Exchange traded funds that invest in gold and silver rose Wednesday after the Federal Reserve coordinated with other central banks to lower the pricing on existing dollar liquidity swap arrangements.
The move, which is designed to make more dollars available and ease funding pressures on European banks, was cheered by global stock markets.
In precious metals, SPDR Gold Shares (NYSEArca: GLD) and iShares Silver Trust (NYSEArca: SLV) rose more than 1%. The greenback weakened after the central bank announcement – PowerShares DB US Dollar Bullish (NYSEArca: UUP) slipped 1.2%.
Gold was rising after China cut the reserve requirement for its lenders. One of the strongest fundamental drivers of gold during the rally has been fears of currency debasement as central banks pump liquidity into the global financial system after the credit meltdown.
SPDR Gold Shares
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