Gold Drops on Deflation Concerns, Flood of Stop-Loss Orders
by Christopher Freeburn | November 28, 2012 4:48 pm
[1]Gold dropped sharply on Wednesday as the U.S. dollar rose, oil declined and the possibility of deflation in Europe and the U.S. prompted a flood of stop-loss orders from worried investors.
Gold futures for December delivery dropped to $1,718.60 on Wednesday, according to CME Group[2]. Gold traded as high as $1,743.10 and as low as $1,705.50. Gold bullion closed in London at $1,722, according to BullionVault[3].
Silver futures for December delivery fell to $33.71 per ounce. Wednesday’s high for silver was $34.04, while the low was $32.90.
Gold and silver funds decline in Wednesday trading.
- The SPDR Gold Trust (NYSE:GLD[4]) dropped 1.3%.
- The iShares Gold Trust (NYSE:IAU[5]) also fell 1.3%.
- The iShares Silver Trust (NYSE:SLV[6]) slid 0.9%.
Gold and silver mining ETFs were mixed during the day.
- The Market Vectors Gold Miners ETF (NYSE:GDX[7]) rose 0.9%.
- The Market Vectors Junior Gold Miners ETF (NYSE:GDXJ[8]) dipped 0.5%.
- The Global X Silver Miners ETF (NYSE:SIL[9]) fell 0.5%.
Gold mining shares mostly rose on Wednesday, with Barrick Gold (NYSE:ABX[10]) rising highest.
- Agnico-Eagle Mines (NYSE:AEM[11]) rose 1.1%.
- Barrick Gold gained 1.4%.
- Eldorado Gold (NYSE:EGO[12]) dipped 0.9%.
- Goldcorp (NYSE:GG[13]) increased 1.2%.
- Kinross Gold (NYSE:KGC[14]) gained 0.9%.
- Newmont Mining (NYSE:NEM[15]) improved 0.7%.
- NovaGold Resources (NYSE:NG[16]) was flat.
- Yamana Gold (NYSE:AUY[17]) climbed 1.3%.
Silver mining shares were mixed on Wednesday.
- Coeur d’Alene Mines (NYSE:CDE[18]) advanced 2.3%.
- Hecla Mining (NYSE:HL[19]) gained 1%.
- Pan American Silver (NASDAQ:PAAS[20]) slipped 0.7%.
- Silver Wheaton (NYSE:SLW[21]) increased 0.5%.
- Silver Standard Resources (NASDAQ:SSRI[22]) plunged 4%.
As of this writing, Christopher Freeburn did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault[23] contributed to this report.
- [Image]: https://investorplace.com/wp-content/uploads/2011/10/PreciousMetalsRecap.gif
- CME Group: http://www.cmegroup.com
- BullionVault: http://www.bullionvault.com
- GLD: http://studio-5.financialcontent.com/investplace/quote?Symbol=GLD
- IAU: http://studio-5.financialcontent.com/investplace/quote?Symbol=IAU
- SLV: http://studio-5.financialcontent.com/investplace/quote?Symbol=SLV
- GDX: http://studio-5.financialcontent.com/investplace/quote?Symbol=GDX
- GDXJ: http://studio-5.financialcontent.com/investplace/quote?Symbol=GDXJ
- SIL: http://studio-5.financialcontent.com/investplace/quote?Symbol=SIL
- ABX: http://studio-5.financialcontent.com/investplace/quote?Symbol=ABX
- AEM: http://studio-5.financialcontent.com/investplace/quote?Symbol=AEM
- EGO: http://studio-5.financialcontent.com/investplace/quote?Symbol=EGO
- GG: http://studio-5.financialcontent.com/investplace/quote?Symbol=GG
- KGC: http://studio-5.financialcontent.com/investplace/quote?Symbol=KGC
- NEM: http://studio-5.financialcontent.com/investplace/quote?Symbol=NEM
- NG: http://studio-5.financialcontent.com/investplace/quote?Symbol=NG
- AUY: http://studio-5.financialcontent.com/investplace/quote?Symbol=AUY
- CDE: http://studio-5.financialcontent.com/investplace/quote?Symbol=CDE
- HL: http://studio-5.financialcontent.com/investplace/quote?Symbol=HL
- PAAS: http://studio-5.financialcontent.com/investplace/quote?Symbol=PAAS
- SLW: http://studio-5.financialcontent.com/investplace/quote?Symbol=SLW
- SSRI: http://studio-5.financialcontent.com/investplace/quote?Symbol=SSRI
- BullionVault: http://www.bullionvault.com/
Source URL: https://investorplace.com/2012/11/gold-drops-on-deflation-concerns-flood-of-stop-loss-orders/