Gold dropped in Wednesday trading and hit a seven-month low following the release of the minutes from the Federal Reserve’s Open Markets Committee Meeting in January.
The minutes showed rising concern among Fed officials that its latest round quantitative easing could cause instability in financial markets. The Fed is expected to revisit the issue in March and could curtail its economic stimulus efforts earlier than previously expected.
Gold futures for March delivery tumbled 1.6% to $1,577.50 per ounce on Wednesday, according to CME Group. Gold traded as high as $1,607.60 and as low as $1,558. Gold bullion closed in London at $1,566, according to BullionVault.
Silver futures for March delivery slid 2.7% to $28.62 per ounce. Wednesday’s high for silver was $29.62, while the low was $28.26.
Gold and silver funds retreated in Wednesday trading.
- The SPDR Gold Trust (NYSE:GLD) dropped 2.5%.
- The iShares Gold Trust (NYSE:IAU) also sank 2.5%.
- The iShares Silver Trust (NYSE:SLV) slumped 3%.
Gold and silver mining ETFs also dropped during the day.
- The Market Vectors Gold Miners ETF (NYSE:GDX) slid 4.9%.
- The Market Vectors Junior Gold Miners ETF (NYSE:GDXJ) declined 4.9%.
- The Global X Silver Miners ETF (NYSE:SIL) fell 4.8%.
Gold mining shares plummeted on Wednesday.
- Agnico-Eagle Mines (NYSE:AEM) dropped 5.3%.
- Barrick Gold (NYSE:ABX) sank 3.9%.
- Eldorado Gold (NYSE:EGO) fell 5.1%.
- Goldcorp (NYSE:GG) declined 3.9%.
- Kinross Gold (NYSE:KGC) plunged 6.2%.
- Newmont Mining (NYSE:NEM) declined 5.5%.
- NovaGold Resources (AMEX:NG) slumped 5.2%.
- Yamana Gold (NYSE:AUY) retreated 4.3%.
Silver mining shares also moved sharply lower.
- Coeur d’Alene Mines (NYSE:CDE) tumbled 7.5%.
- Hecla Mining (NYSE:HL) also fell 7.8%.
- Pan American Silver (NASDAQ:PAAS) declined 6.1%.
- Silver Wheaton (NYSE:SLW) sank 7%.
- Silver Standard Resources (NASDAQ:SSRI) dropped 7%.
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.