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Gold Keeps Sinking on Bernanke Remarks

The U.S. dollar climbed while equities and commodities fell


Gold Silver GLD IAU SLVGold joined equities and other commodities in a broad and sharp selloff on Thursday, falling below $1,300 an ounce. Global markets continued to sink on the heels of yesterday’s comments by Federal Reserve Chairman Ben Bernanke signaling that the Fed could begin slowing its monthly bond-buying later this year.

While Bernanke’s remarks suggested confidence in the strength of the U.S. economy, equities markets continued their downward spin for a second day. The U.S. dollar, by contrast, surged against other world currencies.

Seasonal Patterns Say to Buy Gold, Sell Semiconductors
Seasonal Patterns Say to Buy Gold, Sell Semiconductors

Gold futures for July delivery plummeted 6.4% to $1,285.90 per ounce on Thursday, according to CME Group. Gold traded as high as $1,349.80 and as low as $1,280.80. Gold bullion closed in London at $1,281, according to BullionVault.

Silver futures for July delivery plunged 8.3% to $19.82 per ounce. Thursday’s high for silver was $21.28 while the low was $19.64.

Gold and silver funds sank in Thursday trading.

  • The SPDR Gold Trust (GLD) tumbled 5.4%.
  • The iShares Gold Trust (IAU) also declined 5.4%.
  • The iShares Silver Trust (SLV) plunged 8%.

Gold and silver mining ETFs slumped during the day.

  • The Market Vectors Gold Miners ETF (GDX) dropped 7.4%.
  • The Market Vectors Junior Gold Miners ETF (GDXJ) plummeted 9.8%.
  • The Global X Silver Miners ETF (SIL) dipped 3%.

Gold mining shares nose-dived on Thursday.

  • Agnico-Eagle Mines (AEM) dove 8.1%.
  • Barrick Gold (ABX) sank 7.9%.
  • Eldorado Gold (EGO) dropped 9%.
  • Goldcorp (GG) plunged 8.6%.
  • Kinross Gold (KGC) fell 8.5%.
  • Newmont Mining (NEM) declined 6.8%.
  • NovaGold Resources (NG) slid 7.5%.
  • Yamana Gold (AUY) plummeted 9.9%.

Silver mining shares pulled back sharply during the day.

  • Coeur d’Alene Mines (CDE) dropped 5.6%.
  • Hecla Mining (HL) retreated 5.7%.
  • Pan American Silver (PAAS) fell 4.4%.
  • Silver Wheaton (SLW) plunged 9.2%.
  • Silver Standard Resources (SSRI) moved down 7.6%.

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,

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