Gold turned lower and the U.S. dollar rallied after the Federal Reserve
announced plans to extend the average maturity of its holdings of U.S.
Treasuries, also known as Operation Twist. Gold futures per the December 2011
contract slid from as high as $1,818 to as low as $1,782 following the FOMC
announcement, and remained lower by $17.80, or 1.0%, at $1,791.30 per ounce as
of 2:59pm ET. Gold equities relinquished their gains alongside the yellow metal,
with the Market Vectors Gold Miners ETF (GDX) unchanged at $65.63 per share.
Silver pared its gains considerably this afternoon, as it retreated from an
intra-day high of $40.77 to trade higher by just 0.1% at $40.19 per ounce. The
U.S. Dollar Index, a trade-weighted measure of the greenback versus several of
the worlds other leading currencies, climbed from negative territory on the day
near 76.80 to as high as 77.33.
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