Gold Rally Stalls Ahead of Release of Fed Minutes

Silver also fell and miners retreated across the board

   

Gold Rally Stalls Ahead of Release of Fed Minutes

PreciousMetalsRecap Gold Rally Stalls Ahead of Release of Fed MinutesAfter rising for nine straight sessions, gold fell back slightly in Wednesday trading ahead of the release of the minutes from the Federal Reserve’s January meeting.

The minutes, released Wednesday afternoon, showed disagreement among Fed officials about interest rates, the pace of stimulus tapering and the strength of the U.S. economy. Gold fell further in after-hours trading after the minutes’ release. U.S. stock markets also closed lower.

11103054 gold bullion 200x200 Gold Rally Stalls Ahead of Release of Fed Minutes
Will Gold Become Worthless?

Gold futures for April delivery slipped 0.3% to $1,320.40 per ounce on Wednesday, according to CME Group. Gold traded as high as $1,323 and as low as $1,314. Bullion closed in London at $1,314, according to BullionVault.

Silver futures for March delivery dipped o.2% to $21.85 per ounce. Wednesday’s high for silver was $21.96, while the low was $21.62.

Metal funds sank on Wednesday.

  • The SPDR Gold Shares (GLD) fell 0.9%.
  • The iShares Gold Trust (IAU) slid 0.9%.
  • The iShares Silver Trust (SLV) dropped 2.4%.

Mining ETFs declined during the day.

  • The Market Vectors Gold Miners ETF (GDX) faded 3.1%.
  • The Market Vectors Junior Gold Miners ETF (GDXJ) tumbled 6.8%.
  • The Global X Silver Miners ETF (SIL) moved down 3.3%.

Gold stocks pulled back on Wednesday.

  • Agnico-Eagle Mines (AEM) fell 4%.
  • Barrick Gold (ABX) slipped 2.9%.
  • Eldorado Gold (EGO) decreased 2.8%.
  • Goldcorp (GG) slid 3.9%.
  • Kinross Gold (KGC) sank 3.1%.
  • Newmont Mining (NEM) dipped 1.8%.
  • NovaGold Resources (NG) tumbled 5.6%.
  • Yamana Gold (AUY) faded 2.9%.

Silver mining shares retreated during the day.

  • Coeur d’Alene Mines (CDE) dropped 5.4%.
  • Hecla Mining (HL) sank 4.7%.
  • Pan American Silver (PAAS) fell 3.6%.
  • Silver Wheaton (SLW) slid 3.2%.
  • Silver Standard Resources (SSRI) declined 4.4%.

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, http://investorplace.com/2014/02/gold-rally-finally-stalls/.

©2014 InvestorPlace Media, LLC

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