Gold Tumbles Below $1,400 an Ounce

Gold futures have fallen for five consecutive sessions

   

Gold Tumbles Below $1,400 an Ounce

PreciousMetalsRecap Gold Tumbles Below $1,400 an OunceA still-rising U.S. dollar and advancing equities sent gold down for a fifth straight session, pushing the metal below $1,400 an ounce. The Dow Jones Industrial Average and S&P 500 closed at fresh record highs for a second consecutive day, while the U.S. dollar rose against the euro.

Investors also took note of a report showing that U.S. wholesale prices declined in April — a signal that dispelled fears that inflation could rise.

gold bars Gold Tumbles Below $1,400 an Ounce
Stop Hating on Gold Miners

Gold futures for June delivery dropped 2% to $1,396.20 per ounce on Wednesday, according to CME Group. Gold traded as high as $1,429.40 and as low as $1,389. Gold bullion closed in London at $1,394, according to BullionVault.

Silver futures for June delivery sank 3% to $22.65 per ounce. Wednesday’s high for silver was $23.38 while the low was $22.47.

Gold and silver funds slumped in Wednesday trading.

  • The SPDR Gold Trust (NYSE:GLD) declined 2.3%.
  • The iShares Gold Trust (NYSE:IAU) also fell 2.3%.
  • The iShares Silver Trust (NYSE:SLV) dropped 3.6%.

Gold and silver mining ETFs tumbled during the day.

  • The Market Vectors Gold Miners ETF (NYSE:GDX) slid 4.5%.
  • The Market Vectors Junior Gold Miners ETF (NYSE:GDXJ) plunged 7.8%.
  • The Global X Silver Miners ETF (NYSE:SIL) sank 3.8%.

Gold mining shares moved sharply lower on Wednesday.

  • Agnico-Eagle Mines (NYSE:AEM) dropped 5.4%.
  • Barrick Gold (NYSE:ABX) fell 5.2%.
  • Eldorado Gold (NYSE:EGO) slid 4.4%.
  • Goldcorp (NYSE:GG) declined 5.1%.
  • Kinross Gold (NYSE:KGC) dipped 1.1%.
  • Newmont Mining (NYSE:NEM) sank 3%.
  • NovaGold Resources (AMEX:NG) plunged 5.1%.
  • Yamana Gold (NYSE:AUY) slumped 5.3%.

Silver mining shares also also tumbled during the day.

  • Coeur d’Alene Mines (NYSE:CDE) fell 3.1%.
  • Hecla Mining (NYSE:HL) declined 2.5%.
  • Pan American Silver (NASDAQ:PAAS) sank 3.8%.
  • Silver Wheaton (NYSE:SLW) plunged 5.3%.
  • Silver Standard Resources (NASDAQ:SSRI) moved down 3.7%.

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.


Article printed from InvestorPlace Media, http://investorplace.com/2013/05/gold-tumbles-below-1400-an-ounce/.

©2014 InvestorPlace Media, LLC

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