Gold retreated on Tuesday, surrendering some ground gained yesterday when the metal jumped after the crisis in Ukraine escalated sharply over the weekend. The metal faded after Russia ordered troops it had previously deployed in exercises along Ukraine’s borders back to their bases. Equities markets also surged during the day.
In Moscow, Russian Federation President Vladimir Putin said he saw no reason for Russia to use force in eastern Ukraine at the moment, signaling that a broader military action in Ukraine was not imminent. Putin claims that Russian forces in Crimea are there to protect ethnic Russians. U.S. leaders say that ethnic Russians in Ukraine are not facing any actual threats and accused Putin of making up excuses to justify the occupation of Crimea. U.S. Secretary of State John Kerry has landed in Kiev with $1 billion in loan guarantees meant to bolster Ukraine’s nascent government.
Gold futures for April delivery dropped 0.9% to $1,337.90 per ounce on Tuesday, according to CME Group. Gold traded as high as $1,352.90 and as low as $1,331.20. Bullion closed in London at $1,337, according to BullionVault.
Silver futures for May delivery sank 1.2% to $21.22 per ounce. Tuesday’s high for silver was $21.54, while the low was $21.04.
Metal funds declined on Tuesday.
- The SPDR Gold Shares (GLD) slipped 1.2%.
- The iShares Gold Trust (IAU) fell 1.2%.
- The iShares Silver Trust (SLV) decreased 1.2%.
Mining ETFs faded during the day.
- The Market Vectors Gold Miners ETF (GDX) slid 0.8%.
- The Market Vectors Junior Gold Miners ETF (GDXJ) moved down 0.9%.
- The Global X Silver Miners ETF (SIL) rose 0.6%.
Gold stocks mostly sank on Tuesday.
- Agnico-Eagle Mines (AEM) dipped 0.2%.
- Barrick Gold (ABX) fell 0.7%.
- Eldorado Gold (EGO) slipped 0.7%.
- Goldcorp (GG) declined 0.8%.
- Kinross Gold (KGC) moved down 0.8%.
- Newmont Mining (NEM) climbed 2.2%.
- NovaGold Resources (NG) gained 0.8%.
- Yamana Gold (AUY) edged down 0.2%.
Silver mining shares were mixed during the day.
- Coeur d’Alene Mines (CDE) fell 0.6%.
- Hecla Mining (HL) rose 1.2%.
- Pan American Silver (PAAS) was flat.
- Silver Wheaton (SLW) slid 1.2%.
- Silver Standard Resources (SSRI) added 0.4%.
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.