Gold, Silver Slide; Eldorado Gold Hammered

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

Gold Silver GLD IAU SLV[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.

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

Gold miners showed varying levels of losses Monday.

Many silver mining shares suffered, too.

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.

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  2. CME Group data:
  3. BullionVault:
  4. saw net losses last week:
  5. EGO:
  6. cut its target price on EGO shares:
  7. SLW:
  8. GLD:
  9. IAU:
  10. SLV:
  11. GDXJ:
  12. GDX:
  13. SIL:
  14. AEM:
  15. ABX:
  16. GG:
  17. KGC:
  18. NEM:
  19. NG:
  20. AUY:
  21. CDE:
  22. HL:
  23. PAAS:
  24. SSRI:
  25. BullionVault:

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