Gold Sinks on Surge in New Home Sales

Silver also sank and miners followed the metals

   

Gold Sinks on Surge in New Home Sales

PreciousMetalsRecap Gold Sinks on Surge in New Home SalesGold fell back in Wednesday trading after a report signaled continued strength in the U.S. real estate market, weakening the metal’s safe haven appeal. It marked gold’s first decline in four sessions.

According to the Commerce Department, sales of new single-family homes surged almost 10% in January, rising to their highest level in more than five years. The news bolstered the U.S. dollar, which rose against other currencies.

11103054 gold bullion 200x200 Gold Sinks on Surge in New Home Sales
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Gold futures for April delivery dropped 1.1% to $1,328 per ounce on Wednesday, according to CME Group. Gold traded as high as $1,345.60 and as low as $1,322.30. Bullion closed in London at $1,330, according to BullionVault.

Silver futures for March delivery tumbled 3.2% to $21.25 per ounce. Wednesday’s high for silver was $22.04, while the low was $21.09.

Metal funds declined on Wednesday.

  • The SPDR Gold Shares (GLD) slid 0.9%.
  • The iShares Gold Trust (IAU) fell 0.9%.
  • The iShares Silver Trust (SLV) dropped 2.9%.

Mining ETFs faded during the day.

  • The Market Vectors Gold Miners ETF (GDX) sank 1.2%.
  • The Market Vectors Junior Gold Miners ETF (GDXJ) fell 3.2%.
  • The Global X Silver Miners ETF (SIL) declined 2.8%.

Gold stocks pulled back on Wednesday.

  • Agnico-Eagle Mines (AEM) slid 1.8%.
  • Barrick Gold (ABX) sank 1.2%.
  • Eldorado Gold (EGO) dropped 3.5%.
  • Goldcorp (GG) dipped 0.6%.
  • Kinross Gold (KGC) slipped 0.7%.
  • Newmont Mining (NEM) waned 0.8%.
  • NovaGold Resources (NG) moved down 2.5%.
  • Yamana Gold (AUY) decreased 0.5%.

Silver mining shares retreated during the day.

  • Coeur d’Alene Mines (CDE) sank 1.6%.
  • Hecla Mining (HL) declined 3%.
  • Pan American Silver (PAAS) slid 1.8%.
  • Silver Wheaton (SLW) dropped 1.3%.
  • Silver Standard Resources (SSRI) dipped 0.2%.

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-sinks-surge-new-home-sales/.

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