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On Wednesday, gold (NYSEARCA:GLD) futures for December — the most active contract — decreased $2.50 to close at $1,370.10 per ounce, while silver (NYSEARCA:SLV) futures for September fell 11 cents to finish at $22.96.
Both precious metals edged lower ahead of the latest minutes from the Federal Open Market Committee, but recovered most of their losses shortly after the minutes were released.
The Federal Reserve still believes the economy is weak, as seen in the growth of real gross domestic product in the first six months of the year. Although the latest employment report for June showed “solid gains” in the labor market, the labor force participation rate and part-time employment numbers remain a concern. In the longer-term, policy makers believe the economy will strengthen.
The central bank explains, “A number of participants indicated, however, that they were somewhat less confident about a near-term pickup in economic growth than they had been in June — factors cited in this regard included recent increases in mortgage rates, higher oil prices, slow growth in key U.S. export markets, and the possibility that fiscal restraint might not lessen.”
By the end of the trading day, shares of the SPDR Gold Trust (NYSEARCA:GLD) closed 0.30 percent in the red, while the iShares Silver Trust (NYSEARCA:SLV) declined 0.20 percent. Shares of Barrick Gold (NYSE:ABX) and Yamana Gold (NYSE:AUY) both dropped more than 3 percent. First Majestic Silver (NYSE:AG) shares fell 4.3 percent.
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Disclosure: Long EXK, AG, HL, PHYS
Read the original article from Wall St. Cheat Sheet