Gold, Silver Turn Lower as FOMC Meets

by Andrew Burger | June 19, 2012 1:14 pm

[1]Gold and silver were heading lower on Tuesday morning as G-20 leaders meet in Mexico and the Federal Reserve Open Market Committee (FOMC) meets in Washington, D.C.

Spot gold was 0.66% lower as of 12:20 p.m., bid at $1,617.90 an ounce. The morning high reached $1,632.70, and the low $1,616.60, according to Kitco market data[2]. The London afternoon reference price was fixed at $1,625.50, $10 an ounce higher than Monday’s price fixing.

Spot silver was moving lower, down 1.32% and bid at $28.36. The day’s high thus far was $28.95 and the low $28.24. The London a.m. reference price was fixed at $28.81, 38 cents higher than Monday’s reference price.

Aiming to deal more effectively with the ongoing debt crisis in Europe, eurozone leaders at the G-20 summit[3] in Los Cabos, Mexico, spelled out the steps they will take to forge a “more integrated financial architecture.”

ZEW’s monthly survey of German economic sentiment[4] fell to -16.9 in June, the fastest rate since October 1998.

Greece’s new governing coalition seems set for another clash with Germany and other eurozone nations as New Democracy-Pasok coalition leaders were preparing to ask to extend an agreed-upon debt-reduction schedule[5].

U.S. chain-store sales remained soft, unchanged in the June 16 week, according to the latest ICSC-Goldman survey[6]. Year-over-year growth of 3.6% was the highest since mid-May, but the less volatile four-week moving average, unchanged at 3.1%, is at a three-month low.

Gold bullion fluctuated around the $1,630-per-ounce level in London morning trading Tuesday, BullionVault reported[7].

“For the moment, we expect policy decisions from the Fed to influence the Gold Price more than risk appetite linked to the Euro crisis,” BullionVault quoted Phillip Futures Singapore analyst Lynette Tan. “We would be quite surprised if we saw no [Fed policy] easing this week,”according to a research note from Goldman Sachs US chief economist Jan Hatzius.

Gold and silver trusts were down Tuesday morning.

• The SPDR Gold Trust (NYSE:GLD[8]) was showing losses of around 0.45%.
• The iShares Gold Trust (NYSE:IAU[9]) was trading around 0.5% lower.
• The iShares Silver Trust (NYSE:SLV[10]) was down around 1%.

Gold mining ETFs were flat to lower, while the Global X Silver Miners ETF was in positive territory.

• The Market Vectors Gold Miners ETF (NYSE:GDX[11]) was down around 0.6%.
• The Market Vectors Junior Gold Miners ETF (NYSE:GDXJ[12]) was moving around the unchanged level.
• The Global X Silver Miners ETF (NYSE:SIL[13]) was up around 0.2%.

Gold mining shares were showing morning losses Tuesday.

• Agnico-Eagle Mines (NYSE:AEM[14]) was trading around the unchanged level.
• Barrick Gold (NYSE:ABX[15]) was around 0.25% lower.
• Eldorado Gold (NYSE:EGO[16]) was down around 1.8%.
• Goldcorp (NYSE:GG[17]) was around 1% lower.
• Kinross Gold Corp. (NYSE:KGC[18]) was down nearly 0.9%.
• Newmont Mining (NYSE:NEM[19]) was showing losses of around 1%.
• NovaGold Resources (NYSEAMEX:NG[20]) was down some 1.3%.
• Yamana Gold (USA) (NYSE:AUY[21]) was around 0.2% lower.

Silver mining shares were showing mixed results.

• Coeur d’Alene Mines (NYSE:CDE[22]) was up around 0.1%.
• Hecla Mining (NYSE:HL[23]) was down around 0.2%.
• Pan American Silver (NASDAQ:PAAS[24]) was up more than 0.9%.
• Silver Wheaton (NYSE:SLW[25]) was down around 0.4%.
• Silver Standard Resources (NASDAQ:SSRI[26]) was up more than 1.3%.

As of this writing, Andrew Burger did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault contributed to this report.

Source URL: https://investorplace.com/2012/06/gold-silver-turn-lower-as-fomc-meets/

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