Gold Falls on Fed Tapering Speculation

by Christopher Freeburn | December 17, 2013 4:44 pm

Gold Falls on Fed Tapering Speculation

PreciousMetalsRecap Gold Falls on Fed Tapering Speculation[1]Rising expectations that the U.S. Federal Reserve will decide to curtail its monthly bond-buying — possibly as early as this month — sent gold lower in Tuesday trading.

The Fed will hold its Federal Open Markets Committee (FOMC) meeting this week. Fed officials have signaled that they could begin tapering stimulus as soon as the economy showed signs of strength. Recent economic reports have shown better-than-expected employment, manufacturing and retail sales data, though consumer confidence remains weak.

Gold futures for February fell 1.1% to $1,230.10 per ounce on Tuesday, according to CME Group[2]. Gold traded as high as $1,247.60 and as low as $1,226.50. Bullion closed in London at $1,232, according to BullionVault[3].

Silver futures for March delivery sank 1.3%, to $19.84 per ounce. Tuesday’s high for silver was $20.23, while the low was $19.68.

Metal funds moved lower on Tuesday.

Mining ETFs faded during the day.

Gold stocks mostly retreated on Tuesday.

Silver mining shares mostly declined during the day.

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.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/10/PreciousMetalsRecap.gif
  2. CME Group: http://www.cmegroup.com
  3. BullionVault: http://www.bullionvault.com
  4. GLD: http://studio-5.financialcontent.com/investplace/quote?Symbol=GLD
  5. IAU: http://studio-5.financialcontent.com/investplace/quote?Symbol=IAU
  6. SLV: http://studio-5.financialcontent.com/investplace/quote?Symbol=SLV
  7. GDX: http://studio-5.financialcontent.com/investplace/quote?Symbol=GDX
  8. GDXJ: http://studio-5.financialcontent.com/investplace/quote?Symbol=GDXJ
  9. SIL: http://studio-5.financialcontent.com/investplace/quote?Symbol=SIL
  10. AEM: http://studio-5.financialcontent.com/investplace/quote?Symbol=AEM
  11. ABX: http://studio-5.financialcontent.com/investplace/quote?Symbol=ABX
  12. EGO: http://studio-5.financialcontent.com/investplace/quote?Symbol=EGO
  13. GG: http://studio-5.financialcontent.com/investplace/quote?Symbol=GG
  14. KGC: http://studio-5.financialcontent.com/investplace/quote?Symbol=KGC
  15. NEM: http://studio-5.financialcontent.com/investplace/quote?Symbol=NEM
  16. NG: http://studio-5.financialcontent.com/investplace/quote?Symbol=NG
  17. AUY: http://studio-5.financialcontent.com/investplace/quote?Symbol=AUY
  18. CDE: http://studio-5.financialcontent.com/investplace/quote?Symbol=CDE
  19. HL: http://studio-5.financialcontent.com/investplace/quote?Symbol=HL
  20. PAAS: http://studio-5.financialcontent.com/investplace/quote?Symbol=PAAS
  21. SLW: http://studio-5.financialcontent.com/investplace/quote?Symbol=SLW
  22. SSRI: http://studio-5.financialcontent.com/investplace/quote?Symbol=SSRI
  23. BullionVault: http://www.bullionvault.com/

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