A stronger U.S. dollar is taking its toll on precious metals, along with stocks, as October draws to an end.
Japan’s central bank intervened in the foreign exchange market to put an end to the appreciation of the yen, marking the third time this year Japan has done so.
Japan is believed to have sold the largest amount of yen ever for a single day in its latest intervention. The dollar jumped nearly 3% against the yen and strengthened against other major currencies as a result, which in turn sent precious metals, commodities and share prices lower.
Spot gold was down around 1.35% at 10 a.m., having hit a high of $1,726.80 and a low of $1,715 Monday morning. Spot gold was bid at $1,719.70 per ounce with an ask price of $1,720.70. The morning reference price was fixed at $1,718, according to Kitco market data.
Spot silver was nearly 2.9% lower, trading at $34.27 Bid, $34.37 Ask, having hit a morning high of $34.73 and a low of $34.03. Friday’s reference price was set at $34.24 per ounce in the London a.m.
Gold and silver trusts were down sharply in exchange trading.
- The SPDR Gold Trust (AMEX:GLD) was more than 1.3% lower.
- The iShares Gold Trust (AMEX:IAU) was down nearly 1.3%.
- The iShares Silver Trust (AMEX:SLV) was sharply lower, down more than 2.6%.
Gold and silver mining ETFs were sharply lower as well.
- The Market Vectors Gold Miners ETF (AMEX:GDX) was 1.7% lower.
- The Market Vector Junior Gold Miners ETF (AMEX:GDXJ) was down over 2.2%.
- The Global X Silver Miners ETF (AMEX:SIL) was more than 2.3% lower.
Shares of gold miners were showing sizable morning losses.
- Agnico-Eagle Mines (USA) (NYSE:AEM) was around 1% lower.
- Barrick Gold Corp. (NYSE:ABX) was between 1.5% and 1.65% lower.
- Goldcorp (NYSE:GG) was down around 1.5%.
- Newmont Mining Corp. (NYSE:NEM) was between 2.3% and 2.5% lower.
- NovaGold Resources (USA) (AMEX:NG) was down some 1.9%.
Silver miners’ shares were down sharply across the board.
- Coeur D’Alene Mines Corp. (NYSE:CDE) was some 2.8% lower.
- Hecla Mining (NYSE:HL) was down around 2.75%.
- Pan American Silver Corp. (USA) (NASDAQ:PAAS) was down 2.2%.
- Silver Wheaton Corp. (USA) (NYSE:SLW) was showing losses of around 2.8%.
- Silver Standard Resources Inc. (USA) (NASDAQ:SSRI) was down more than 2.5%.
As of this writing, Andrew Burger did not own a position in any of the aforementioned stocks.