Gold, Silver Slide; Eldorado Gold Hammered

by Angela Nazworth | July 23, 2012 4:50 pm

[1]Gold futures about traded 0.3% lower Monday with a final bid of $1,577.10 per ounce, according to CME Group data[2]. Gold reached a high of $1,582.40 and a low of $1,562.00. Gold bullion ended at $1,580 per ounce for Monday’s trading session in London, according to BullionVault[3].

Volumes of gold bullion held by exchange-traded funds saw net losses last week[4], while on the currency markets Monday morning the euro hit a new two-year low against the dollar, dropping below $1.21. As a result, the U.S. Dollar Index hit a new two-year high.

“The great danger for the Gold Price is the stronger dollar, because of its long-term negative correlation to gold,” Eugen Weinberg, head of commodity research at Commerzbank, told BullionVault.

Gold mining stocks also took hits Monday. Eldorado Gold (NYSE:EGO[5]) suffered losses greater than 5% after investment firm Raymond James cut its target price on EGO shares[6] from $20 to $18.50.

Silver futures were down about 1% with a final bid of $27.02 per ounce. Monday’s high for silver prices reached $27.24, and the low was $26.68.

Silver mining stocks did not fare well, either. Silver Wheaton (NYSE:SLW[7]) shares stumbled more than 3% after varying reports from analysts. Macquarie lowered SLW shares to a rating of outperform to neutral. TD Securities also downgraded shares of SLW from a buy to a hold. However, both RBC Capital and Scotia Capital raised their price targets on the stock.

Gold and silver trusts fell slightly Monday.

• The SPDR Gold Trust (NYSE:GLD[8]) was down 0.4%.
• The iShares Gold Trust (NYSE:IAU[9]) dropped 0.3%.
• The iShares Silver Trust (NYSE:SLV[10]) was 1% lower.

Gold and silver mining ETFs showed significant losses results Monday, with the Market Vectors Junior Gold Miners ETF (NYSE:GDXJ[11]) leading the way.

• The Market Vectors Gold Miners ETF (NYSE:GDX[12]) fell 2.5%.
• The Market Vectors Junior Gold Miners ETF dropped by 3.7%.
• The Global X Silver Miners ETF (NYSE:SIL[13]) was 3% lower.

Gold miners showed varying levels of losses Monday.

• Agnico-Eagle Mines (NYSE:AEM[14]) fell 2.3%.
• Barrick Gold (NYSE:ABX[15]) was 2.8% lower.
• Eldorado Gold showed losses of 5.2%.
• Goldcorp (NYSE:GG[16]) tripped 2.2%.
• Kinross Gold (NYSE:KGC[17]) was 1.9% lower.
• Newmont Mining (NYSE:NEM[18]) dipped 1.4%.
• NovaGold Resources (AMEX:NG[19]) was 2.9% lower.
• Yamana Gold (NYSE:AUY[20]) was up 1.5%.

Many silver mining shares suffered, too.

• Coeur d’Alene Mines (NYSE:CDE[21]) was down 3.2%.
• Hecla Mining (NYSE:HL[22]) dropped 4%.
• Pan American Silver (NASDAQ:PAAS[23]) was 3.8% lower.
• Silver Wheaton dropped 3.7%.
• Silver Standard Resources (NASDAQ:SSRI[24]) was down 1.9%.

As of this writing, Angela Nazworth did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault[25] contributed to this report.

Source URL: https://investorplace.com/2012/07/gold-silver-slide-eldorado-gold-hammered/

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