Gold Drops on Bernanke Remarks
by Christopher Freeburn | May 22, 2013 4:26 pm
[1]Comments by Federal Reserve Chairman Ben Bernanke hinting at a possible draw down of the Fed’s economic stimulus efforts in coming months sent gold lower in Wednesday trading. In testimony before Congress, Bernanke said the Fed would continue bond-buying for the time being, but could reduce that activity if the economy showed continued improvement.
Gold futures for June delivery sank 0.7% to $1,367.40 per ounce on Wednesday, according to CME Group[2]. Gold traded as high as $1,413.30 and as low as $1,353.10. Gold bullion closed in London at $1,364, according to BullionVault[3].
Silver futures for June delivery edged up 0.1% to $22.46 per ounce. Wednesday’s high for silver was $23.18 while the low was $22.22.
Gold and silver funds declined in Wednesday trading.
- The SPDR Gold Trust (GLD[4]) fell 0.7%.
- The iShares Gold Trust (IAU[5]) sank 0.8%.
- The iShares Silver Trust (SLV[6]) edged down 0.5%.
Gold and silver mining ETFs improved during the day.
- The Market Vectors Gold Miners ETF (GDX[7]) gained 1.2%.
- The Market Vectors Junior Gold Miners ETF (GDXJ[8]) climbed 1.7%.
- The Global X Silver Miners ETF (SIL[9]) rose 0.5%.
Gold mining shares mostly advanced on Wednesday.
- Agnico-Eagle Mines (AEM[10]) added 2.2%.
- Barrick Gold (ABX[11]) inched up 0.6%.
- Eldorado Gold (EGO[12]) climbed 3%.
- Goldcorp (GG[13]) rose 2%.
- Kinross Gold (KGC[14]) surged 3.8%.
- Newmont Mining (NEM[15]) was flat.
- NovaGold Resources (NG[16]) was also unchanged.
- Yamana Gold (AUY[17]) increased 0.9%.
Silver mining shares mostly gained during the day.
- Coeur d’Alene Mines (CDE[18]) slid 1.1%.
- Hecla Mining (HL[19]) improved 0.3%.
- Pan American Silver (PAAS[20]) gained 0.8%.
- Silver Wheaton (SLW[21]) climbed 2.4%.
- Silver Standard Resources (SSRI[22]) also rose 2.4%.
As of this writing, Christopher Freeburn did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault[23] contributed to this report.
- [Image]: https://investorplace.com/wp-content/uploads/2011/10/PreciousMetalsRecap.gif
- 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/
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