by Christopher Freeburn | December 2, 2013 5:27 pm
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. 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.
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 contributed to this report.
Source URL: http://investorplace.com/2013/12/gold-tumbles-strong-manufacturing-data/
Short URL: http://invstplc.com/1nwS1WY
Copyright ©2015 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.