Gold Tumbles to Near Three-Year Low
by Christopher Freeburn | June 26, 2013 4:33 pm
[1]Gold dropped sharply in Wednesday trading as investors contemplated the likely winding down of Federal Reserve stimulus efforts this year.
As the Fed slows its monthly bond-buying, the risk of rapid inflation dissipates, diminishing the precious metal’s appeal as a safe haven investment. Gold has fallen almost 23% during the current calendar quarter and nearly 40% since its September 2011 record high.
Gold futures for July delivery dropped 3.6% to $1,229.60 per ounce on Wednesday, according to CME Group[2]. Gold traded as high as $1,276.20 and as low as $1,223.20. Gold bullion closed in London at $1,228, according to BullionVault[3].
Silver futures for July delivery plunged 4.8% to $18.59 per ounce. Wednesday’s high for silver was $19.58 while the low was $18.36.
Gold and silver funds declined in Wednesday trading.
- The SPDR Gold Trust (GLD[4]) sank 4.2%.
- The iShares Gold Trust (IAU[5]) fell 4.3%.
- The iShares Silver Trust (SLV[6]) plummeted 5.4%.
Gold and silver mining ETFs retreated during the day.
- The Market Vectors Gold Miners ETF (GDX[7]) dove 6%.
- The Market Vectors Junior Gold Miners ETF (GDXJ[8]) fell 6.6%.
- The Global X Silver Miners ETF (SIL[9]) dropped 6.2%.
Gold mining shares sank on Wednesday.
- Agnico-Eagle Mines (AEM[10]) fell 4.2%.
- Barrick Gold (ABX[11]) plunged 8.3%.
- Eldorado Gold (EGO[12]) slid 3.8%.
- Goldcorp (GG[13]) declined 4.6%.
- Kinross Gold (KGC[14]) dropped 5.2%.
- Newmont Mining (NEM[15]) moved down 5.9%.
- NovaGold Resources (NG[16]) faded 4.7%.
- Yamana Gold (AUY[17]) pulled back 4.6%.
Silver mining shares slumped during the day.
- Coeur d’Alene Mines (CDE[18]) declined 5.4%.
- Hecla Mining (HL[19]) dropped 6.6%.
- Pan American Silver (PAAS[20]) slipped 3.8%.
- Silver Wheaton (SLW[21]) plunged 7.8%.
- Silver Standard Resources (SSRI[22]) fell 4.7%.
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/
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