Gold Sinks on Possible Debt Ceiling Extension
by Christopher Freeburn | October 10, 2013 4:31 pm
[1]An 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[2]. Gold traded as high as $1,312 and as low as $1,293.40. Bullion closed in London at $1,289, according to BullionVault[3].
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[4]) slid 1.5%.
- The iShares Gold Trust (IAU[5]) moved down 1.3%.
- The iShares Silver Trust (SLV[6]) dipped 1.1%.
Mining ETFs were declined during the day.
- The Market Vectors Gold Miners ETF (GDX[7]) dropped 1.6%.
- The Market Vectors Junior Gold Miners ETF (GDXJ[8]) fell 1%.
- The Global X Silver Miners ETF (SIL[9]) fell 0.5%.
Gold mining shares mostly sank on Thursday.
- Agnico-Eagle Mines (AEM[10]) sank 0.4%.
- Barrick Gold (ABX[11]) gained 1%.
- Eldorado Gold (EGO[12]) fell 0.8%.
- Goldcorp (GG[13]) dropped 1.7%.
- Kinross Gold (KGC[14]) moved down 1.3%.
- Newmont Mining (NEM[15]) slid 0.8%.
- NovaGold Resources (NG[16]) edged lower 0.5%.
- Yamana Gold (AUY[17]) tumbled 3.1%.
Silver mining shares were mixed during the day.
- Coeur d’Alene Mines (CDE[18]) fell 0.4%.
- Hecla Mining (HL[19]) rose 0.3%.
- Pan American Silver (PAAS[20]) gained 0.4%.
- Silver Wheaton (SLW[21]) dropped 0.9%.
- Silver Standard Resources (SSRI[22]) rose 0.2%.
As of this writing, Christopher Freeburn did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault[23] contributed to this report.
- [Image]: https://investorplace.com/wp-content/uploads/2011/10/PreciousMetalsRecap.gif
- CME Group: http://www.cmegroup.com
- BullionVault: http://www.bullionvault.com
- 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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