Gold Drops as Yellen Nod Boosts U.S. Dollar

by Christopher Freeburn | October 9, 2013 4:34 pm

[1]The nomination of Janet Yellen to replace Ben Bernanke as chairman of the U.S. Federal Reserve[2] sent the U.S. dollar up against other currencies and gold down in Wednesday trading.

Gold futures for December delivery dropped 1.3% to $1,307.20 per ounce on Wednesday, according to CME Group[3]. Gold traded as high as $1,323.30 and as low as $1,294.60. Bullion closed in London at $1,308, according to BullionVault[4].

Silver futures for December delivery slid 2.5% to $21.89 per ounce. Wednesday’s high for silver was $22.41, while the low was $21.75.

Metal funds declined in Wednesday trading.

• The SPDR Gold Shares (GLD[5]) fell 1%.
• The iShares Gold Trust (IAU[6]) sank 1.1%.
• The iShares Silver Trust (SLV[7]) dropped 2.1%.

Mining ETFs were mostly lower during the day.

• The Market Vectors Gold Miners ETF (GDX[8]) rose 0.6%.
• The Market Vectors Junior Gold Miners ETF (GDXJ[9]) sank 1.2%.
• The Global X Silver Miners ETF (SIL[10]) fell 0.3%.

Gold mining shares were mixed on Wednesday.

• Agnico-Eagle Mines (AEM[11]) dipped 0.5%.
• Barrick Gold (ABX[12]) edged up 0.1%.
• Eldorado Gold (EGO[13]) gained 0.2%.
• Goldcorp (GG[14]) rose 0.3%.
• Kinross Gold (KGC[15]) slipped 0.2%.
• Newmont Mining (NEM[16]) added 0.6%.
• NovaGold Resources (NG[17]) tumbled 6.4%.
• Yamana Gold (AUY[18]) added 1.3%.

Silver mining shares sank during the day.

• Coeur d’Alene Mines (CDE[19]) slid 0.7%.
• Hecla Mining (HL[20]) added 1.5%.
• Pan American Silver (PAAS[21]) fell 0.7%.
• Silver Wheaton (SLW[22]) dipped 0.6%.
• Silver Standard Resources (SSRI[23]) dropped 3.9%.

As of this writing, Christopher Freeburn did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault[24] contributed to this report.

Source URL: https://investorplace.com/2013/10/gold-drops-yellen-nod-boosts-u-s-dollar/

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