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Gold Hits Three-Month Low on Cliff Progress

Gold and silver futures sank and miners tumbled after them


Gold Silver GLD IAU SLVReports suggesting that U.S. House Speaker John Boehner and President Barack Obama were moving closer to a fiscal cliff deal sent gold tumbling to a three-month low. Investors grew concerned that a budget deal could mean less economic stimulus from the federal government.

Gold futures for February delivery dropped 1.6% to $1,670.70 on Tuesday, according to CME Group. Gold traded as high as $1,704.40 and as low as $1,662. Gold bullion closed in London at $1,674, according to BullionVault.

Gold In 2013: Things Look Just Right
Gold In 2013: Things Look Just Right

Silver futures for February delivery fell almost 2% to $31.64 per ounce. Tuesday’s high for silver was $32.54, while the low was $31.41.

Gold and silver funds sank in Tuesday trading.

  • The SPDR Gold Trust (NYSE:GLD) dropped 1.4%.
  • The iShares Gold Trust (NYSE:IAU) fell 1.5%.
  • The iShares Silver Trust (NYSE:SLV) plunged 1.8%.

Gold and silver mining ETFs were down during the day.

  • The Market Vectors Gold Miners ETF (NYSE:GDX) sank 1.6%.
  • The Market Vectors Junior Gold Miners ETF (NYSE:GDXJ) tumbled 2.7%.
  • The Global X Silver Miners ETF (NYSE:SIL) retreated 1.4%.

Gold mining shares fell, with NovaGold Resources (NYSE:NG), falling the most.

  • Agnico-Eagle Mines (NYSE:AEM) dropped 2.2%.
  • Barrick Gold (NYSE:ABX) fell 1.5%.
  • Eldorado Gold (NYSE:EGO) sank 3.9%.
  • Goldcorp (NYSE:GG) slipped 1.6%.
  • Kinross Gold (NYSE:KGC) declined 2.1%.
  • Newmont Mining (NYSE:NEM) dipped 0.7%.
  • NovaGold Resources plunged 4.4%.
  • Yamana Gold (NYSE:AUY) moved down 1.5%.

Silver mining shares slid on Tuesday.

  • Coeur d’Alene Mines (NYSE:CDE) sank 1.8%.
  • Hecla Mining (NYSE:HL) fell 1.9%.
  • Pan American Silver (NASDAQ:PAAS) dropped 3.4%.
  • Silver Wheaton (NYSE:SLW) retreated 2.9%
  • Silver Standard Resources (NASDAQ:SSRI) tumbled 3%.

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

Article printed from InvestorPlace Media, http://investorplace.com/2012/12/gold-hits-three-month-low-on-cliff-progress/.

©2017 InvestorPlace Media, LLC