Gold Drops as Government Shuts Down

Gold futures dropped back below $1,300 an ounce

   

PreciousMetalsRecap Gold Drops as Government Shuts DownInvestors failed to see any safe haven value in gold on the first day of a politically driven shutdown of the U.S. government, as the metal tumbled in Tuesday’s trading.

National parks and other federal government operations closed their doors as congressional Republicans and the White House remained in a stand-off over GOP attempts to link continued federal funding to a delay in the implementation of the Affordable Care Act, a key provision of which launched today.

11103054 gold bullion 200x200 Gold Drops as Government Shuts Down
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Gold futures for December delivery fell 3.1% to $1,286.10 per ounce on Tuesday, according to CME Group. Gold traded as high as $1,337.80 and as low as $1,282.40. Bullion closed in London at $1,291, according to BullionVault.

Silver futures for December delivery dropped 2.5% to $21.18 per ounce. Tuesday’s high for silver was $21.97, while the low was $20.63.

Metal funds dropped in Tuesday trading.

  • The SPDR Gold Shares (GLD) sank 2.8%.
  • The iShares Gold Trust (IAU) also fell 2.8%.
  • The iShares Silver Trust (SLV) declined 2.4%.

Mining ETFs pulled back during the day.

  • The Market Vectors Gold Miners ETF (GDX) dropped 2.4%.
  • The Market Vectors Junior Gold Miners ETF (GDXJ) slid 3.2%.
  • The Global X Silver Miners ETF (SIL) dipped 2.1%.

Gold mining shares declined on Tuesday.

  • Agnico-Eagle Mines (AEM) fell 3.2%.
  • Barrick Gold (ABX) slid 2.6%.
  • Eldorado Gold (EGO) sank 1.9%.
  • Goldcorp (GG) dropped 3%.
  • Kinross Gold (KGC) moved down 2.4%.
  • Newmont Mining (NEM) pulled back 3.2%.
  • NovaGold Resources (NG) waned 1.7%.
  • Yamana Gold (AUY) decreased 3%.

Silver mining shares sank during the day.

  • Coeur d’Alene Mines (CDE) slid 1.5%.
  • Hecla Mining (HL) fell 2.2%.
  • Pan American Silver (PAAS) retreated 2.4%.
  • Silver Wheaton (SLW) dropped 2.7%.
  • Silver Standard Resources (SSRI) declined 1.8%.

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/2013/10/gold-drops-as-government-shuts-down/.

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