Gold Falls While Equities Surge

Gold Silver GLD IAU SLVRising equities markets around the world undercut gold’s attractiveness to investors, sending the precious metal down in Monday trading.

The Dow Jones Industrial Average and S&P 500 hit record highs early in the session — with the DJIA breaking through the 16,000 mark for the first time ever. However, gains sputtered in the afternoon and the DJIA closed below its high mark, while the S&P 500 drifted into negative territory. Equities markets in Europe closed higher.

Gold futures for December delivery dropped 1.2% to $1,272.30 per ounce on Monday, according to CME Group. Gold traded as high as $1,289.20 and as low as $1,269.20. Bullion closed in London at $1,276, according to BullionVault.

Silver futures for December fell 1.8% to $20.36 per ounce. Monday’s high for silver was $20.80, while the low was $20.29.

Metal funds pulled back in Monday trading.

  • The SPDR Gold Shares (GLD) sank 1.1%.
  • The iShares Gold Trust (IAU) slid 1%.
  • The iShares Silver Trust (SLV) declined 1.7%.

Mining ETFs moved lower during the day.

  • The Market Vectors Gold Miners ETF (GDX) fell 1.9%.
  • The Market Vectors Junior Gold Miners ETF (GDXJ) dropped 2%.
  • The Global X Silver Miners ETF (SIL) slipped 1.7%.

Gold stocks sank on Monday.

  • Agnico-Eagle Mines (AEM) dropped 3.5%.
  • Barrick Gold (ABX) fell 2.2%.
  • Eldorado Gold (EGO) declined 3.2%.
  • Goldcorp (GG) dipped 0.7%.
  • Kinross Gold (KGC) slid 3.5%.
  • Newmont Mining (NEM) moved down 2.7%.
  • NovaGold Resources (NG) tumbled 3.8%.
  • Yamana Gold (AUY) pulled back 1.7%.

Silver mining shares declined during the day.

  • Coeur d’Alene Mines (CDE) waned 2.3%.
  • Hecla Mining (HL) dropped 3.2%.
  • Pan American Silver (PAAS) fell 2.1%.
  • Silver Wheaton (SLW) sank 2.2%.
  • Silver Standard Resources (SSRI) decreased 3.4%.

As of this writing, Christopher Freeburn did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault contributed to this report.

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