Gold Drops as Lower Trade Deficit Boosts U.S. Dollar
by Christopher Freeburn | January 7, 2014 4:37 pm
[1]Gold fell back on Tuesday as the U.S. dollar rallied against other currencies and U.S. equities moved higher.
The greenback was strengthened by a report from the Commerce Department showing that the U.S. trade deficit slid 13% to $34.3 billion in November, down almost 13% from October. Economists had expected November’s trade deficit to come in around $40 billion.
Gold futures for February delivery sank 0.7% to $1,229.60 per ounce on Tuesday, according to CME Group[2]. Gold traded as high as $1,244.70 and as low as $1,224.20. Bullion closed in London at $1,234, according to BullionVault[3].
Silver futures for March delivery fell 1.6%, to $19.79 per ounce. Tuesday’s high for silver was $20.28, while the low was $19.63.
Metal funds declined on Tuesday.
- The SPDR Gold Shares (GLD[4]) fell 0.6%.
- The iShares Gold Trust (IAU[5]) slipped 0.5%.
- The iShares Silver Trust (SLV[6]) dropped 1.5%.
Mining ETFs were mixed during the day.
- The Market Vectors Gold Miners ETF (GDX[7]) inched up 0.1%.
- The Market Vectors Junior Gold Miners ETF (GDXJ[8]) sank 1%.
- The Global X Silver Miners ETF (SIL[9]) climbed 0.2%.
Gold stocks were mixed on Tuesday.
- Agnico-Eagle Mines (AEM[10]) dipped 0.3%.
- Barrick Gold (ABX[11]) fell 0.4%.
- Eldorado Gold (EGO[12]) rose 0.2%.
- Goldcorp (GG[13]) was flat.
- Kinross Gold (KGC[14]) slipped 0.3%.
- Newmont Mining (NEM[15]) faded 0.6%.
- NovaGold Resources (NG[16]) dropped 2.2%.
- Yamana Gold (AUY[17]) climbed 1.2%.
Silver mining shares mostly retreated during the day.
- Coeur d’Alene Mines (CDE[18]) moved down 0.2%.
- Hecla Mining (HL[19]) slid 0.3%.
- Pan American Silver (PAAS[20]) sank 0.5%.
- Silver Wheaton (SLW[21]) fell 0.2%.
- Silver Standard Resources (SSRI[22]) rose 0.7%.
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/
Source URL: https://investorplace.com/2014/01/gold-drops-lower-trade-deficit-boosts-u-s-dollar/