Gold Sinks on Possible Debt Ceiling Extension

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Gold Silver GLD IAU SLVAn offer from congressional Republicans to temporarily increase the U.S. debt ceiling — postponing the chance of a historic U.S. default — reassured investors Thursday. The U.S. dollar climbed during the day, while gold moved lower on fading safe-haven appeal.

The GOP proposal would give Congress and the White House an additional six weeks to reach a budget agreement without risking the nation’s credit rating and dollar’s status as a reserve currency. The Obama administration said it would consider the deal. Equities markets surged on news of the proposal.

Gold futures for December delivery fell 0.8% to $1,296.90 per ounce on Thursday, according to CME Group. Gold traded as high as $1,312 and as low as $1,293.40. Bullion closed in London at $1,289, according to BullionVault.

Silver futures for December delivery rose half a cent to $21.90 per ounce. Thursday’s high for silver was $22.25, while the low was $21.72.

Metal funds pulled back in Thursday trading.

  • The SPDR Gold Shares (GLD) slid 1.5%.
  • The iShares Gold Trust (IAU) moved down 1.3%.
  • The iShares Silver Trust (SLV) dipped 1.1%.

Mining ETFs were declined during the day.

  • The Market Vectors Gold Miners ETF (GDX) dropped 1.6%.
  • The Market Vectors Junior Gold Miners ETF (GDXJ) fell 1%.
  • The Global X Silver Miners ETF (SIL) fell 0.5%.

Gold mining shares mostly sank on Thursday.

  • Agnico-Eagle Mines (AEM) sank 0.4%.
  • Barrick Gold (ABX) gained 1%.
  • Eldorado Gold (EGO) fell 0.8%.
  • Goldcorp (GG) dropped 1.7%.
  • Kinross Gold (KGC) moved down 1.3%.
  • Newmont Mining (NEM) slid 0.8%.
  • NovaGold Resources (NG) edged lower 0.5%.
  • Yamana Gold (AUY) tumbled 3.1%.

Silver mining shares were mixed during the day.

  • Coeur d’Alene Mines (CDE) fell 0.4%.
  • Hecla Mining (HL) rose 0.3%.
  • Pan American Silver (PAAS) gained 0.4%.
  • Silver Wheaton (SLW) dropped 0.9%.
  • Silver Standard Resources (SSRI) rose 0.2%.

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, https://investorplace.com/2013/10/gold-sinks-possible-debt-ceiling-deal/.

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