Gold slipped moderately in Wednesday trading after lawmakers in Washington D.C. negotiated a budget deal that would prevent another battle and potential U.S. government shutdown in January.
The agreement between bipartisan members of the U.S. Senate and House of Representatives will restore some funding that was eliminated by sequester cuts and establishes federal spending limits for two years. The agreement has sparked criticism from both conservatives and progressives, and must still clear the House and the Senate before it becomes law. By averting another budget showdown next month, the deal tarnishes gold’s appeal as a safe haven investment.
Gold futures for February sank 0.3% to $1,257.20 per ounce on Wednesday, according to CME Group. Gold traded as high as $1,263.20 and as low as $1,252.10. Bullion closed in London at $1,256, according to BullionVault.
Silver futures for March delivery inched up 0.2%, rising to $20.36 per ounce. Wednesday’s high for silver was $20.48, while the low was $20.21.
Metal funds declined on Wednesday.
- The SPDR Gold Shares (GLD) fell 0.8%.
- The iShares Gold Trust (IAU) slid 0.7%.
- The iShares Silver Trust (SLV) waned 0.6%.
Mining ETFs faltered during the day.
- The Market Vectors Gold Miners ETF (GDX) dropped 3.7%.
- The Market Vectors Junior Gold Miners ETF (GDXJ) fell 2.6%.
- The Global X Silver Miners ETF (SIL) declined 3.1%.
Gold stocks retreated on Wednesday.
- Agnico-Eagle Mines (AEM) sank 3.3%.
- Barrick Gold (ABX) fell 2.9%.
- Eldorado Gold (EGO) dropped 4.5%.
- Goldcorp (GG) slid 2.4%.
- Kinross Gold (KGC) tumbled 5.2%.
- Newmont Mining (NEM) waned 2.9%.
- NovaGold Resources (NG) decreased 3.5%.
- Yamana Gold (AUY) moved down 3.9%.
Silver mining shares pulled back during the day.
- Coeur d’Alene Mines (CDE) fell 4.7%.
- Hecla Mining (HL) declined 3.7%.
- Pan American Silver (PAAS) slid 3.6%.
- Silver Wheaton (SLW) dropped 2.9%.
- Silver Standard Resources (SSRI) declined 3.5%.
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.