The gold price dropped $6.00 Wednesday to $1,829.50 per ounce after gaining 2.6% during yesterday’s session. While the price of gold has been mired in a trading range over the past two weeks, the broader stock and commodity markets have regained their footing. Stocks are on pace to advance for the fourth consecutive day on rising expectations that the Federal Reserve is prepared to implement additional monetary easing measures at the September Federal Open Market Committee meeting.
On Tuesday, the gold price surged $47.20 to $1,835.60 per ounce amid a broad-based rally in precious metals. The price of gold rebounded from Monday’s substantial sell-off and climbed within 3.9% of its all-time record high of $1,913.60 per ounce. The SPDR Gold Trust (GLD), the most liquid gold price proxy in the global equity markets, jumped $4.99 to $178.88 per share.
Strength in the gold price was accompanies by gains in silver. Gold’s sister precious metal advanced 1.4% to $41.42 per ounce. Gold and silver equities rallied as well with the Philadelphia Gold & Silver Index (XAU) rising 1.5% to 218.51. Among gold producers, Agnico-Eagle Mines (AEM) and IAMGOLD (IAG) climbed 1.4% and 1.8%, respectively. Coeur d’Alene Mines (CDE) and Silver Wheaton (SLW), two of the world’s larger silver miners, added 1.3% and 2.0%, respectively.