Concerns over the future of federal economic stimulus sent gold modestly lower in Tuesday trading.
The U.S. Federal Reserve kicked off its Federal Open Markets Committee meeting, which extends through Wednesday. Investors are worried that the Fed could announce plans to trim its stimulus as early as this week. While most economists expect the Fed to begin slowing its stimulus spending, the timing of any tapering remains in doubt.
Gold futures for December delivery fell 0.6% to $1,390.40 per ounce on Tuesday, according to CME Group. Gold traded as high as $1,324.70 and as low as $1,305.80. Gold bullion closed in London at $1,309, according to BullionVault.
Silver futures for December delivery dropped 1% to $21.78 per ounce. Tuesday’s high for silver was $22.14, while the low was $21.64.
Gold and silver funds held steady in Tuesday trading.
- The SPDR Gold Shares (GLD) was flat.
- The iShares Gold Trust (IAU) was unchanged.
- The iShares Silver Trust (SLV) inched up 0.1%.
Gold and silver mining ETFs gained during the day.
- The Market Vectors Gold Miners ETF (GDX) rose 2.1%.
- The Market Vectors Junior Gold Miners ETF (GDXJ) added 0.8%.
- The Global X Silver Miners ETF (SIL) moved up 0.3%.
Gold mining shares mostly advanced on Tuesday.
- Agnico-Eagle Mines (AEM) rose 2.3%.
- Barrick Gold (ABX) climbed 1.1%.
- Eldorado Gold (EGO) gained 2%.
- Goldcorp (GG) added 1.3%.
- Kinross Gold (KGC) moved up 1.4%.
- Newmont Mining (NEM) increased 1.4%.
- NovaGold Resources (NG) was flat.
- Yamana Gold (AUY) surged 3.1%.
Silver mining shares mostly rose during the day.
- Coeur d’Alene Mines (CDE) advanced 1.5%.
- Hecla Mining (HL) climbed 3.2%.
- Pan American Silver (PAAS) inched up 0.6%.
- Silver Wheaton (SLW) added 1.8%.
- Silver Standard Resources (SSRI) fell 1.5%.
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.