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Gold Tumbles to Near Three-Year Low

Mining stocks followed the metals, sinking across the board


Gold Silver GLD IAU SLVGold dropped sharply in Wednesday trading as investors contemplated the likely winding down of Federal Reserve stimulus efforts this year.

As the Fed slows its monthly bond-buying, the risk of rapid inflation dissipates, diminishing the precious metal’s appeal as a safe haven investment. Gold has fallen almost 23% during the current calendar quarter and nearly 40% since its September 2011 record high.

Gold’s Collapse Is Not Done
Gold’s Collapse Is Not Done

Gold futures for July delivery dropped 3.6% to $1,229.60 per ounce on Wednesday, according to CME Group. Gold traded as high as $1,276.20 and as low as $1,223.20. Gold bullion closed in London at $1,228, according to BullionVault.

Silver futures for July delivery plunged 4.8% to $18.59 per ounce. Wednesday’s high for silver was $19.58 while the low was $18.36.

Gold and silver funds declined in Wednesday trading.

  • The SPDR Gold Trust (GLD) sank 4.2%.
  • The iShares Gold Trust (IAU) fell 4.3%.
  • The iShares Silver Trust (SLV) plummeted 5.4%.

Gold and silver mining ETFs retreated during the day.

  • The Market Vectors Gold Miners ETF (GDX) dove 6%.
  • The Market Vectors Junior Gold Miners ETF (GDXJ) fell 6.6%.
  • The Global X Silver Miners ETF (SIL) dropped 6.2%.

Gold mining shares sank on Wednesday.

  • Agnico-Eagle Mines (AEM) fell 4.2%.
  • Barrick Gold (ABX) plunged 8.3%.
  • Eldorado Gold (EGO) slid 3.8%.
  • Goldcorp (GG) declined 4.6%.
  • Kinross Gold (KGC) dropped 5.2%.
  • Newmont Mining (NEM) moved down 5.9%.
  • NovaGold Resources (NG) faded 4.7%.
  • Yamana Gold (AUY) pulled back 4.6%.

Silver mining shares slumped during the day.

  • Coeur d’Alene Mines (CDE) declined 5.4%.
  • Hecla Mining (HL) dropped 6.6%.
  • Pan American Silver (PAAS) slipped 3.8%.
  • Silver Wheaton (SLW) plunged 7.8%.
  • Silver Standard Resources (SSRI) fell 4.7%.

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/2013/06/gold-tumbles-to-near-three-year-low/.

©2017 InvestorPlace Media, LLC