Immediately following the Fed's announcement that once again they would not be raising rates in September, gold shot up over $20 as continuing confusion from the U.S. central bank is driving investors into the best safe haven.
But gold bullion was not the only precious metal asset to benefit from the Fed's remaining at the status quo as the primary market index for gold miners, the GDX, also rose 7% on Wednesday signalling that expectations of much higher prices to come will encapsulate stocks tied to the precious metal.
SPDR Gold Shares (GLD), which tracks the spot price of gold, jumped 1.5% through the close. The ETF recaptured its 50-day moving average for the first time since Sept. 8. It had come under pressure from uncertainty surrounding the Fed's next move on interest rates.
Higher rates tend to weigh on gold, a nonyielding haven asset, while lifting the dollar in which it is globally priced.
VanEck Vectors Gold Miners (GDX) vaulted 7.1% on the stock market today. Mining companies are widely regarded as a leveraged play on the price of gold.
Silver and silver-backed mining ETFs also flew higher in big volume, with iShares Silver Trust (SLV) breaking through resistance at its 50-day moving average and closing at the top of the day's range. - Investors Business Daily