Gold Keeps Sinking on Bernanke Remarks
by Christopher Freeburn | June 20, 2013 4:39 pm
[1]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[2]. 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[3].
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[4]) tumbled 5.4%.
- The iShares Gold Trust (IAU[5]) also declined 5.4%.
- The iShares Silver Trust (SLV[6]) plunged 8%.
Gold and silver mining ETFs slumped during the day.
- The Market Vectors Gold Miners ETF (GDX[7]) dropped 7.4%.
- The Market Vectors Junior Gold Miners ETF (GDXJ[8]) plummeted 9.8%.
- The Global X Silver Miners ETF (SIL[9]) dipped 3%.
Gold mining shares nose-dived on Thursday.
- Agnico-Eagle Mines (AEM[10]) dove 8.1%.
- Barrick Gold (ABX[11]) sank 7.9%.
- Eldorado Gold (EGO[12]) dropped 9%.
- Goldcorp (GG[13]) plunged 8.6%.
- Kinross Gold (KGC[14]) fell 8.5%.
- Newmont Mining (NEM[15]) declined 6.8%.
- NovaGold Resources (NG[16]) slid 7.5%.
- Yamana Gold (AUY[17]) plummeted 9.9%.
Silver mining shares pulled back sharply during the day.
- Coeur d’Alene Mines (CDE[18]) dropped 5.6%.
- Hecla Mining (HL[19]) retreated 5.7%.
- Pan American Silver (PAAS[20]) fell 4.4%.
- Silver Wheaton (SLW[21]) plunged 9.2%.
- Silver Standard Resources (SSRI[22]) 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[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/
Source URL: https://investorplace.com/2013/06/gold-keeps-sinking-on-bernanke-remarks/