Gold futures rose, but fell back down again as Federal Reserve Chairman Ben Bernanke delivered typically opaque remarks to Congress.
The metal climbed after Bernanke told Congress, in a prepared statement, that the Fed’s stimulus policy wasn’t on a “preset course.” However, during the Q&A portion of his time before lawmakers, Bernanke’s responses appeared to confirm investor suspicion that he is eager to taper stimulus as soon as possible, sending gold lower.
Gold futures for August delivery slid 1% to $1,277.50 per ounce Wednesday, according to CME Group. Gold traded as high as $1,299.70 and as low as $1,269.30. Gold bullion closed in London at $1,277, according to BullionVault.
Silver futures for August delivery dropped 2.6% to $19.41 per ounce. Wednesday’s high for silver was $20.09, while the low was $19.27.
Gold and silver funds declined in Wednesday trading.
- The SPDR Gold Trust (GLD) fell 1.3%.
- The iShares Gold Trust (IAU) moved up 1.2%.
- The iShares Silver Trust (SLV) dropped 3.5%.
Gold and silver mining ETFs sank during the day.
- The Market Vectors Gold Miners ETF (GDX) dropped 3%.
- The Market Vectors Junior Gold Miners ETF (GDXJ) declined 2.9%.
- The Global X Silver Miners ETF (SIL) slid 1.5%.
Gold mining shares moved lower on Wednesday.
- Agnico-Eagle Mines (AEM) decreased 3.6%.
- Barrick Gold (ABX) slipped 2%.
- Eldorado Gold (EGO) sank 2.6%.
- Goldcorp (GG) dipped 2.3%.
- Kinross Gold (KGC) fell 2.8%.
- Newmont Mining (NEM) declined 1.5%.
- NovaGold Resources (NG) tumbled 4.1%.
- Yamana Gold (AUY) dropped 3.7%.
Silver mining shares slumped during the day.
- Coeur d’Alene Mines (CDE) fell 1.7%.
- Hecla Mining (HL) sank 4%.
- Pan American Silver (PAAS) dropped 3%.
- Silver Wheaton (SLW) slipped 2%.
- Silver Standard Resources (SSRI) moved down 3.4%.
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.