by Christopher Freeburn | January 24, 2013 4:33 pm
A research note from HSBC (NYSE:HBC) indicating that the bank had cut its gold exposure in half sent the metal tumbling in Thursday trading, posting its biggest single-day decline in three weeks. The bank noted that gold’s value as an inflation hedge had eroded as the economic situation appeared to be improving in the U.S. and Europe.
Gold futures for February delivery declined 1% to $1,669.90 on Thursday, according to CME Group. Gold traded as high as $1685.80 and as low as $1664.20. Gold bullion closed in London at $1,671, according to BullionVault.
Silver futures for February delivery fell 2.2% to $31.70 per ounce. Thursday’s high for silver was $32.03 an ounce, while the low was $31.67.
Gold and silver funds declined in Thursday trading.
Gold and silver mining ETFs retreated during the day.
Gold mining shares stumbled, with Kinross Gold (NYSE:KGC) falling the hardest.
Silver mining shares also slumped on Thursday.
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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