Gold Plunges on Goldman Sachs Forecast
by Christopher Freeburn | April 10, 2013 4:29 pm
[1]Gold tumbled in Wednesday trading after Goldman Sachs (NYSE:GS[2]) 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.
Gold futures for May delivery dropped 1.8% to $1,558.40 per ounce on Wednesday, according to CME Group[3]. 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[4].
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[5]) fell 1.7%.
- The iShares Gold Trust (NYSE:IAU[6]) slid 1.6%.
- The iShares Silver Trust (NYSE:SLV[7]) declined 1.3%.
Gold and silver mining ETFs plunged during the day.
- The Market Vectors Gold Miners ETF (NYSE:GDX[8]) dropped 3.8%.
- The Market Vectors Junior Gold Miners ETF (NYSE:GDXJ[9]) dropped 3.6%.
- The Global X Silver Miners ETF (NYSE:SIL[10]) tumbled 2.1%.
Gold mining shares moved down sharply on Wednesday.
- Agnico-Eagle Mines (NYSE:AEM[11]) slipped 1.9%.
- Barrick Gold (NYSE:ABX[12]) plummeted 8.4%.
- Eldorado Gold (NYSE:EGO[13]) dropped 5.4%.
- Goldcorp (NYSE:GG[14]) slid 2.6%.
- Kinross Gold (NYSE:KGC[15]) sank 3.2%.
- Newmont Mining (NYSE:NEM[16]) slumped 2.6%.
- NovaGold Resources (AMEX:NG[17]) plunged 7.8%.
- Yamana Gold (NYSE:AUY[18]) declined 4%.
Silver mining shares retreated during the day.
- Coeur d’Alene Mines (NYSE:CDE[19]) dipped 0.5%.
- Hecla Mining (NYSE:HL[20]) fell 3.5%.
- Pan American Silver (NASDAQ:PAAS[21]) slipped 0.5%.
- Silver Wheaton (NYSE:SLW[22]) tumbled 5.2%.
- Silver Standard Resources (NASDAQ:SSRI[23]) sank 3.8%.
As of this writing, Christopher Freeburn did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault[24] contributed to this report.
- [Image]: https://investorplace.com/wp-content/uploads/2011/10/PreciousMetalsRecap.gif
- GS: http://studio-5.financialcontent.com/investplace/quote?Symbol=GS
- CME Group: http://www.cmegroup.com
- BullionVault: https://investorplace.com/2013/01/weak-jobs-report-lessens-gold-slide/www.bullionvault.com
- GLD: http://studio-5.financialcontent.com/investplace/quote?Symbol=GLD
- IAU: http://studio-5.financialcontent.com/investplace/quote?Symbol=IAU
- SLV: http://studio-5.financialcontent.com/investplace/quote?Symbol=SLV
- GDX: http://studio-5.financialcontent.com/investplace/quote?Symbol=GDX
- GDXJ: http://studio-5.financialcontent.com/investplace/quote?Symbol=GDXJ
- SIL: http://studio-5.financialcontent.com/investplace/quote?Symbol=SIL
- AEM: http://studio-5.financialcontent.com/investplace/quote?Symbol=AEM
- ABX: http://studio-5.financialcontent.com/investplace/quote?Symbol=ABX
- EGO: http://studio-5.financialcontent.com/investplace/quote?Symbol=EGO
- GG: http://studio-5.financialcontent.com/investplace/quote?Symbol=GG
- KGC: http://studio-5.financialcontent.com/investplace/quote?Symbol=KGC
- NEM: http://studio-5.financialcontent.com/investplace/quote?Symbol=NEM
- NG: http://studio-5.financialcontent.com/investplace/quote?Symbol=NG
- AUY: http://studio-5.financialcontent.com/investplace/quote?Symbol=AUY
- CDE: http://studio-5.financialcontent.com/investplace/quote?Symbol=CDE
- HL: http://studio-5.financialcontent.com/investplace/quote?Symbol=HL
- PAAS: http://studio-5.financialcontent.com/investplace/quote?Symbol=PAAS
- SLW: http://studio-5.financialcontent.com/investplace/quote?Symbol=SLW
- SSRI: http://studio-5.financialcontent.com/investplace/quote?Symbol=SSRI
- BullionVault: http://www.bullionvault.com/
Source URL: https://investorplace.com/2013/04/gold-plunges-on-goldman-sachs-forecast/