Gold Slips on Bearish Forecast
by Christopher Freeburn | January 22, 2014 4:43 pm
Gold fell slightly in light Wednesday trading, marking its second straight losing session.
Investor interest in the precious metal was diminished after Morgan Stanley (MS[1]) slashed its 2014 average price target for gold to $1,160 per ounce, down 11.6% from its previous outlook. The bank also cut its average gold price forecast for 2015 by 12.5%. Morgan Stanley analysts indicated that gold would continue to fade as long as U.S. equities climb.
Gold futures for February delivery sank 0.3% to $1,238.60 per ounce on Wednesday, according to CME Group. Gold traded as high as $1,243.50 and as low as $1,237.40. Bullion closed in London at $1,238, according to BullionVault.
Silver futures for March delivery dipped 0.2%, to $19.84 per ounce. Wednesday’s high for silver was $19.94, while the low was $19.77.
Metal funds sank on Wednesday.
- The SPDR Gold Shares (GLD[2]) slid 0.4%.
- The iShares Gold Trust (IAU[3]) dipped 0.4%.
- The iShares Silver Trust (SLV[4]) fell 0.7%.
Mining ETFs declined during the day.
- The Market Vectors Gold Miners ETF (GDX[5]) dropped 2.5%.
- The Market Vectors Junior Gold Miners ETF (GDXJ[6]) tumbled 4.8%.
- The Global X Silver Miners ETF (SIL[7]) sank 3%.
Gold stocks pulled back on Wednesday.
- Agnico-Eagle Mines (AEM[8]) dropped 4.1%.
- Barrick Gold (ABX[9]) fell 2.3%.
- Eldorado Gold (EGO[10]) slid 1.7%.
- Goldcorp (GG[11]) waned 2%.
- Kinross Gold (KGC[12]) sank 3.5%.
- Newmont Mining (NEM[13]) faded 1.7%.
- NovaGold Resources (NG[14]) tumbled 5.1%.
- Yamana Gold (AUY[15]) moved down 2.8%.
Silver mining shares retreated during the day.
- Coeur d’Alene Mines (CDE[16]) fell 1.2%.
- Hecla Mining (HL[17]) slipped 1.8%.
- Pan American Silver (PAAS[18]) dropped 2.1%.
- Silver Wheaton (SLW[19]) declined 2.1%.
- Silver Standard Resources (SSRI[20]) sank 1.7%.
As of this writing, Christopher Freeburn did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault[21] contributed to this report.
- MS: http://studio-5.financialcontent.com/investplace/quote?Symbol=MS
- 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-slips-bearish-forecast/