Gold Plunges on Hedge Fund Selling, Budget Deal Hopes

by Christopher Freeburn | December 20, 2012 4:55 pm

Gold Silver GLD IAU SLV[1]Heavy 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[2]. 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[3].

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.

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

Gold mining shares mostly declined, with Goldcorp (NYSE:GG[10]) falling the most.

Silver mining shares mostly rose on Thursday.

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.

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  2. CME Group:
  3. BullionVault:
  4. GLD:
  5. IAU:
  6. SLV:
  7. GDX:
  8. GDXJ:
  9. SIL:
  10. GG:
  11. AEM:
  12. ABX:
  13. EGO:
  14. KGC:
  15. NEM:
  16. NG:
  17. AUY:
  18. CDE:
  19. HL:
  20. PAAS:
  21. SLW:
  22. SSRI:
  23. BullionVault:

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