Gold Drops on Improving Economic Data
by Christopher Freeburn | October 31, 2013 4:10 pm
[1]Two positive economic reports bolstered the U.S. dollar against other currencies and sent gold down sharply in Thursday trading.
The Chicago Purchasing Managers’ Index surged to a reading of 65.9 this month, up from 55.7 in September. That surprised analysts, who had expected a modest decline for October. In another report, the Department of Labor announced that 340,000 people filed for first-time unemployment benefits last week, in line with economists’ forecasts.
Investors viewed the good news as evidence that the Federal Reserve might initiate tapering of its monthly bond-buying sooner than previously anticipated.
Gold futures for December delivery dropped 1.9% to $1,323.70 per ounce on Thursday, according to CME Group. Gold traded as high as $1,343 and as low as $1,318.70. Bullion closed in London at $1,325, according to BullionVault.
Silver futures for December plunged 4.9% to $21.87 per ounce. Thursday’s high for silver was $22.69, while the low was $21.73.
Metal funds fell in Thursday trading.
- The SPDR Gold Shares (GLD[2]) slid 1.4%.
- The iShares Gold Trust (IAU[3]) sank 1.5%.
- The iShares Silver Trust (SLV[4]) dropped 3.5%.
Mining ETFs declined during the day.
- The Market Vectors Gold Miners ETF (GDX[5]) moved down 4.2%.
- The Market Vectors Junior Gold Miners ETF (GDXJ[6]) tumbled 5.3%.
- The Global X Silver Miners ETF (SIL[7]) fell 3.9%.
Gold stocks retreated on Thursday.
- Agnico-Eagle Mines (AEM[8]) waned 2.3%.
- Barrick Gold (ABX[9]) sank 5.4%.
- Eldorado Gold (EGO[10]) dropped 4.8%.
- Goldcorp (GG[11]) slid 3.5%.
- Kinross Gold (KGC[12]) tumbled 4.7%.
- Newmont Mining (NEM[13]) fell 2.8%.
- NovaGold Resources (NG[14]) declined 4%.
- Yamana Gold (AUY[15]) moved down 2.7%.
Silver mining shares pulled back hard during the day.
- Coeur d’Alene Mines (CDE[16]) slid 3.6%.
- Hecla Mining (HL[17]) tumbled 6%.
- Pan American Silver (PAAS[18]) fell 2.5%.
- Silver Wheaton (SLW[19]) plunged 7.1%.
- Silver Standard Resources (SSRI[20]) dropped 5.6%.
As of this writing, Christopher Freeburn did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault[21] contributed to this report.
Endnotes:
- [Image]: https://investorplace.com/wp-content/uploads/2011/10/PreciousMetalsRecap.gif
- 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/
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