Gold Sinks on Possible Debt Ceiling Extension

Yellow metal slips back below $1,300 an ounce

   

PreciousMetalsRecap Gold Sinks on Possible Debt Ceiling ExtensionAn 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.

11103054 gold bullion 200x200 Gold Sinks on Possible Debt Ceiling Extension
If You Have to Trade Gold, Know This

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

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