Gold 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.
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.