Gold Sinks for Third Straight Session
by Christopher Freeburn | March 19, 2014 4:42 pm
[1]Gold fell sharply in Wednesday trading as investors awaited the outcome of the Federal Reserve’s Federal Open Markets Committee Meeting. When the Fed issued a statement at the meeting’s conclusion, gold futures fell even further in after-hours trading. U.S. equities markets also moved lower.
In a widely-expected move, the Fed said it would cut its monthly bond-buying by another $10 billion, down to $55 billion. However, the central bank surprised many on Wall Street by raising its forecast for short-term interest rates in 2015 and 2016. The Fed also abandoned its 6.5% unemployment rate threshold for the first interest rate hike.
Gold futures for April delivery slid 1.3% to $1,341.30 per ounce on Wednesday, according to CME Group[2]. Gold traded as high as $1,360.20 and as low as $1,331.40. Bullion closed in London at $1,328, according to BullionVault[3].
Silver futures for May delivery dipped 0.2% to $20.83 per ounce. Wednesday’s high for silver was $20.97, while the low was $20.53.
Metal funds declined on Wednesday.
- The SPDR Gold Shares (GLD[4]) sank 1.9%.
- The iShares Gold Trust (IAU[5]) fell 1.9%.
- The iShares Silver Trust (SLV[6]) slipped 1.2%.
Mining ETFs retreated during the day.
- The Market Vectors Gold Miners ETF (GDX[7]) dropped 3.7%.
- The Market Vectors Junior Gold Miners ETF (GDXJ[8]) tumbled 5%.
- The Global X Silver Miners ETF (SIL[9]) declined 3.7%.
Gold stocks sank on Wednesday.
- Agnico-Eagle Mines (AEM[10]) slid 3.3%.
- Barrick Gold (ABX[11]) dropped 4.1%.
- Eldorado Gold (EGO[12]) tumbled 6.9%.
- Goldcorp (GG[13]) moved down 3.5%.
- Kinross Gold (KGC[14]) decreased 3.4%.
- Newmont Mining (NEM[15]) faded 3%.
- NovaGold Resources (NG[16]) fell back 3.5%.
- Yamana Gold (AUY[17]) fell 4.2%.
Silver mining shares pulled back during the day.
- Coeur d’Alene Mines (CDE[18]) fell 2.8%.
- Hecla Mining (HL[19]) slid 3.5%.
- Pan American Silver (PAAS[20]) declined 3.4%.
- Silver Wheaton (SLW[21]) faded 3.1%.
- Silver Standard Resources (SSRI[22]) dropped 3.3%.
As of this writing, Christopher Freeburn did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault[23] contributed to this report.
- [Image]: https://investorplace.com/wp-content/uploads/2011/10/PreciousMetalsRecap.gif
- CME Group: http://www.cmegroup.com
- BullionVault: http://www.bullionvault.com
- 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/2014/03/gold-sinks-third-straight-session/