Gold futures about traded 0.3% lower Monday with a final bid of $1,577.10 per ounce, according to CME Group data. Gold reached a high of $1,582.40 and a low of $1,562.00. Gold bullion ended at $1,580 per ounce for Monday’s trading session in London, according to BullionVault.
Volumes of gold bullion held by exchange-traded funds saw net losses last week, while on the currency markets Monday morning the euro hit a new two-year low against the dollar, dropping below $1.21. As a result, the U.S. Dollar Index hit a new two-year high.
“The great danger for the Gold Price is the stronger dollar, because of its long-term negative correlation to gold,” Eugen Weinberg, head of commodity research at Commerzbank, told BullionVault.
Gold mining stocks also took hits Monday. Eldorado Gold (NYSE:EGO) suffered losses greater than 5% after investment firm Raymond James cut its target price on EGO shares from $20 to $18.50.
Silver futures were down about 1% with a final bid of $27.02 per ounce. Monday’s high for silver prices reached $27.24, and the low was $26.68.
Silver mining stocks did not fare well, either. Silver Wheaton (NYSE:SLW) shares stumbled more than 3% after varying reports from analysts. Macquarie lowered SLW shares to a rating of outperform to neutral. TD Securities also downgraded shares of SLW from a buy to a hold. However, both RBC Capital and Scotia Capital raised their price targets on the stock.
Gold and silver trusts fell slightly Monday.
- The SPDR Gold Trust (NYSE:GLD) was down 0.4%.
- The iShares Gold Trust (NYSE:IAU) dropped 0.3%.
- The iShares Silver Trust (NYSE:SLV) was 1% lower.
Gold and silver mining ETFs showed significant losses results Monday, with the Market Vectors Junior Gold Miners ETF (NYSE:GDXJ) leading the way.
- The Market Vectors Gold Miners ETF (NYSE:GDX) fell 2.5%.
- The Market Vectors Junior Gold Miners ETF dropped by 3.7%.
- The Global X Silver Miners ETF (NYSE:SIL) was 3% lower.
Gold miners showed varying levels of losses Monday.
- Agnico-Eagle Mines (NYSE:AEM) fell 2.3%.
- Barrick Gold (NYSE:ABX) was 2.8% lower.
- Eldorado Gold showed losses of 5.2%.
- Goldcorp (NYSE:GG) tripped 2.2%.
- Kinross Gold (NYSE:KGC) was 1.9% lower.
- Newmont Mining (NYSE:NEM) dipped 1.4%.
- NovaGold Resources (AMEX:NG) was 2.9% lower.
- Yamana Gold (NYSE:AUY) was up 1.5%.
Many silver mining shares suffered, too.
- Coeur d’Alene Mines (NYSE:CDE) was down 3.2%.
- Hecla Mining (NYSE:HL) dropped 4%.
- Pan American Silver (NASDAQ:PAAS) was 3.8% lower.
- Silver Wheaton dropped 3.7%.
- Silver Standard Resources (NASDAQ:SSRI) was down 1.9%.
As of this writing, Angela Nazworth did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault contributed to this report.