Gold Drops on Deflation Concerns, Flood of Stop-Loss Orders

by Christopher Freeburn | November 28, 2012 4:48 pm

Gold Silver GLD IAU SLV[1]Gold dropped sharply on Wednesday as the U.S. dollar rose, oil declined and the possibility of deflation in Europe and the U.S. prompted a flood of stop-loss orders from worried investors.

Gold futures for December delivery dropped to $1,718.60 on Wednesday, according to CME Group[2]. Gold traded as high as $1,743.10 and as low as $1,705.50. Gold bullion closed in London at $1,722, according to BullionVault[3].

Silver futures for December delivery fell to $33.71 per ounce. Wednesday’s high for silver was $34.04, while the low was $32.90.

Gold and silver funds decline in Wednesday trading.

Gold and silver mining ETFs were mixed during the day.

Gold mining shares mostly rose on Wednesday, with Barrick Gold (NYSE:ABX[10]) rising highest.

Silver mining shares were mixed on Wednesday.

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.

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  23. BullionVault:

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