Gold Plunges on Hedge Fund Selling, Budget Deal Hopes

Gold and silver futures sank, while miners were mixed


Gold Plunges on Hedge Fund Selling, Budget Deal Hopes

PreciousMetalsRecap Gold Plunges on Hedge Fund Selling, Budget Deal HopesHeavy end-of-year selling by hedge funds and signals of potential progress in U.S. budget talks sent gold tumbling in Thursday trading, falling below $1,650 an ounce for the first time in months.

Gold futures for February delivery dropped to $1,648 on Thursday, according to CME Group. Gold traded as high as $1,672.80 and as low as $1,636. Gold bullion closed in London at $1,651, according to BullionVault.

gold bars Gold Plunges on Hedge Fund Selling, Budget Deal Hopes
Why Gold MUST Go Higher

Silver futures for February delivery sank to $29.96 per ounce. Thursday’s high for silver was $31.15, while the low was $29.66.

Gold and silver funds sank in Thursday trading.

  • The SPDR Gold Trust (NYSE:GLD) tumbled 1.2%.
  • The iShares Gold Trust (NYSE:IAU) dropped 1.1%.
  • The iShares Silver Trust (NYSE:SLV) plunged 3.7%.

Gold and silver mining ETFs also moved down during the day.

  • The Market Vectors Gold Miners ETF (NYSE:GDX) slipped 0.6%.
  • The Market Vectors Junior Gold Miners ETF (NYSE:GDXJ) fell 1.2%.
  • The Global X Silver Miners ETF (NYSE:SIL) dipped 0.5%.

Gold mining shares mostly declined, with Goldcorp (NYSE:GG) falling the most.

  • Agnico-Eagle Mines (NYSE:AEM) slid 1.2%.
  • Barrick Gold (NYSE:ABX) edged down 0.5%.
  • Eldorado Gold (NYSE:EGO) dipped 0.5%.
  • Goldcorp sank 1.6%.
  • Kinross Gold (NYSE:KGC) declined 0.5%.
  • Newmont Mining (NYSE:NEM) rose 0.8%.
  • NovaGold Resources (NYSE:NG) fell back 0.9%.
  • Yamana Gold (NYSE:AUY) retreated 1.9%.

Silver mining shares mostly rose on Thursday.

  • Coeur d’Alene Mines (NYSE:CDE) climbed 2.4%.
  • Hecla Mining (NYSE:HL) ticked up 0.4%.
  • Pan American Silver (NASDAQ:PAAS) gained 0.5%.
  • Silver Wheaton (NYSE:SLW) fell 1.1%
  • Silver Standard Resources (NASDAQ:SSRI) dipped 0.1%.

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.

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