A 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 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.