FOMC Statement Pares Gold Drop

Gold and silver futures skidded, miners mostly followed

   

PreciousMetalsRecap FOMC Statement Pares Gold DropWeak data on U.S. hiring pushed gold down in early Wednesday trading, but the metal trimmed its losses after the Federal Reserve signaled that it could increase economic stimulus efforts this year.

In a statement issued at the conclusion of the Federal Open Markets Committee Meeting, officials said that bond-buying could rise this year. In previous months, Fed officials had suggested that the program might wind down by year’s end.

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Gold futures for June delivery slumped 1.8% to $1,446.20 per ounce on Wednesday, according to CME Group. Gold traded as high as $1,477.40 and as low as $1,439.70. Gold bullion closed in London at $1,458, according to BullionVault.

Silver futures for June delivery dropped 3.6% to $23.32 per ounce. Wednesday’s high for silver was $24.31, while the low was $23.22.

Gold and silver funds sank in Wednesday trading.

  • The SPDR Gold Trust (NYSE:GLD) slid 1.2%.
  • The iShares Gold Trust (NYSE:IAU) fell 1.2%.
  • The iShares Silver Trust (NYSE:SLV) tumbled 2.6%.

Gold and silver mining ETFs declined during the day.

  • The Market Vectors Gold Miners ETF (NYSE:GDX) declined 2.3%.
  • The Market Vectors Junior Gold Miners ETF (NYSE:GDXJ) dropped 3.4%.
  • The Global X Silver Miners ETF (NYSE:SIL) moved down 1.5%.

Gold mining shares mostly pulled back on Wednesday.

  • Agnico-Eagle Mines (NYSE:AEM) slipped 2.3%.
  • Barrick Gold (NYSE:ABX) fell 2.5%.
  • Eldorado Gold (NYSE:EGO) tumbled 5.3%.
  • Goldcorp (NYSE:GG) slid 2.5%.
  • Kinross Gold (NYSE:KGC) dipped 1.5%.
  • Newmont Mining (NYSE:NEM) sank 4.6%.
  • NovaGold Resources (AMEX:NG) sank 2.8%.
  • Yamana Gold (NYSE:AUY) dropped 5.8%.

Silver mining shares retreated.

  • Coeur d’Alene Mines (NYSE:CDE) slipped 1.7%.
  • Hecla Mining (NYSE:HL) sank 2.7%.
  • Pan American Silver (NASDAQ:PAAS) slumped 1.4%.
  • Silver Wheaton (NYSE:SLW) fell 1.3%.
  • Silver Standard Resources (NASDAQ:SSRI) dipped 0.3%.

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/2013/05/fomc-statement-pares-gold-drop/.

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