Gold Plunges on Goldman Sachs Forecast

Gold plummets, silver declines and miners sink

   

Gold Plunges on Goldman Sachs Forecast

PreciousMetalsRecap Gold Plunges on Goldman Sachs ForecastGold tumbled in Wednesday trading after Goldman Sachs (NYSE:GS) trimmed its price outlook for the metal for the second time in two months. Goldman Sachs lowered its forecast for gold from an average of $1,610 an ounce for 2013 to $1,545 an ounce.

As the metal fell, the U.S. dollar rose and U.S. equity markets tested new record highs.

11103054 gold bullion 200x200 Gold Plunges on Goldman Sachs Forecast
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Gold futures for May delivery dropped 1.8% to $1,558.40 per ounce on Wednesday, according to CME Group. Gold traded as high as $1,586.80 and as low as $1,556.70. Gold bullion closed in London at $1,562 according to BullionVault.

Silver futures for May delivery surged 0.8% to $27.65 per ounce. Wednesday’s high for silver was $27.97, while the low was $27.45.

Gold and silver funds slumped in Wednesday trading.

  • The SPDR Gold Trust (NYSE:GLD) fell 1.7%.
  • The iShares Gold Trust (NYSE:IAU) slid 1.6%.
  • The iShares Silver Trust (NYSE:SLV) declined 1.3%.

Gold and silver mining ETFs plunged during the day.

  • The Market Vectors Gold Miners ETF (NYSE:GDX) dropped 3.8%.
  • The Market Vectors Junior Gold Miners ETF (NYSE:GDXJ) dropped 3.6%.
  • The Global X Silver Miners ETF (NYSE:SIL) tumbled 2.1%.

Gold mining shares moved down sharply on Wednesday.

  • Agnico-Eagle Mines (NYSE:AEM) slipped 1.9%.
  • Barrick Gold (NYSE:ABX) plummeted 8.4%.
  • Eldorado Gold (NYSE:EGO) dropped 5.4%.
  • Goldcorp (NYSE:GG) slid 2.6%.
  • Kinross Gold (NYSE:KGC) sank 3.2%.
  • Newmont Mining (NYSE:NEM) slumped 2.6%.
  • NovaGold Resources (AMEX:NG) plunged 7.8%.
  • Yamana Gold (NYSE:AUY) declined 4%.

Silver mining shares retreated during the day.

  • Coeur d’Alene Mines (NYSE:CDE) dipped 0.5%.
  • Hecla Mining (NYSE:HL) fell 3.5%.
  • Pan American Silver (NASDAQ:PAAS) slipped 0.5%.
  • Silver Wheaton (NYSE:SLW) tumbled 5.2%.
  • Silver Standard Resources (NASDAQ:SSRI) sank 3.8%.

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/2013/04/gold-plunges-on-goldman-sachs-forecast/.

©2014 InvestorPlace Media, LLC

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