Gold Tumbles on Strong Manufacturing Data

by Christopher Freeburn | December 2, 2013 5:27 pm

PreciousMetalsRecap Gold Tumbles on Strong Manufacturing Data[1]A positive report on U.S. manufacturing stoked investor fears that the Federal Reserve might begin pulling back on stimulus efforts, sending gold down sharply in Monday trading.

The Institute for Supply Management’s manufacturing index rose to a reading of 57.3 in November, up from 56.4 in October. That bested the reading of 55 that economists were expecting and marked the index’s best reading since April 2011. The Fed previously has hinted that it will begin tapering its monthly bond-buying when the economy showed sustained signs of strength.

Gold futures for February delivery dropped 2.3% to $1,221.90 per ounce on Monday, according to CME Group[2]. Gold traded as high as $1,251.20 and as low as $1,220.30. Bullion closed in London at $1,221, according to BullionVault[3].

Silver futures for February plunged 3.8% to $19.27 per ounce. Monday’s high for silver was $19.72, while the low was $19.46.

Metal funds pulled back on Monday.

Mining ETFs nosedived during the day.

Gold stocks moved sharply lower on Monday.

Silver mining shares retreated 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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