Gold Drops in the Wake of Fed Tapering Decision

Silver tumbled and miners sank across the board


PreciousMetalsRecap Gold Drops in the Wake of Fed Tapering DecisionGold fell sharply in Thursday trading, a day after the Federal Reserve said it would further reduce its monthly stimulus. While the metal faded, U.S. stock markets and the U.S. dollar posted gains during the day.

On Wednesday afternoon, the Fed announced plans to reduce its monthly bond-buying by another $10 billion starting in February, following a similar cut last month. Gold had settled higher on Wednesday prior to the Fed’s announcement.

11103054 gold bullion 200x95 Gold Drops in the Wake of Fed Tapering Decision
Trade of the Day: Market Vectors Gold Juniors ETF (GDXJ)

Gold futures for April delivery sank 1.6% to $1,242.50 per ounce on Thursday, according to CME Group. Gold traded as high as $1,267.80 and as low as $1,237.50. Bullion closed in London at $1,246, according to BullionVault.

Silver futures for March delivery slid 2.2%, to $19.13 per ounce. Thursday’s high for silver was $19.73, while the low was $18.97.

Metal funds declined on Thursday.

  • The SPDR Gold Shares (GLD) fell 2.2%.
  • The iShares Gold Trust (IAU) sank 2.3%.
  • The iShares Silver Trust (SLV) moved down 2.8%.

Mining ETFs retreated during the day.

  • The Market Vectors Gold Miners ETF (GDX) slid 2.1%.
  • The Market Vectors Junior Gold Miners ETF (GDXJ) tumbled 3.7%.
  • The Global X Silver Miners ETF (SIL) faded 2.3%.

Gold stocks sank on Thursday.

  • Agnico-Eagle Mines (AEM) dropped 3%.
  • Barrick Gold (ABX) slipped 1.5%.
  • Eldorado Gold (EGO) declined 3.8%.
  • Goldcorp (GG) fell 2.4%.
  • Kinross Gold (KGC) dipped 1.6%.
  • Newmont Mining (NEM) decreased 3.1%.
  • NovaGold Resources (NG) faded 2.6%.
  • Yamana Gold (AUY) edged lower 0.6%.

Silver mining shares pulled back during the day.

  • Coeur d’Alene Mines (CDE) slid 1.4
  • Hecla Mining (HL) fell 2.2%.
  • Pan American Silver (PAAS) dipped 0.6%.
  • Silver Wheaton (SLW) declined 1.4%.
  • Silver Standard Resources (SSRI) sank 1.6%.

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.

Article printed from InvestorPlace Media,

©2015 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.