Gold Drops as Lower Trade Deficit Boosts U.S. Dollar

by Christopher Freeburn | January 7, 2014 4:37 pm

Gold Silver GLD IAU SLV[1]Gold fell back on Tuesday as the U.S. dollar rallied against other currencies and U.S. equities moved higher.

The greenback was strengthened by a report from the Commerce Department showing that the U.S. trade deficit slid 13% to $34.3 billion in November, down almost 13% from October. Economists had expected November’s trade deficit to come in around $40 billion.

Gold futures for February delivery sank 0.7% to $1,229.60 per ounce on Tuesday, according to CME Group[2]. Gold traded as high as $1,244.70 and as low as $1,224.20. Bullion closed in London at $1,234, according to BullionVault[3].

Silver futures for March delivery fell 1.6%, to $19.79 per ounce. Tuesday’s high for silver was $20.28, while the low was $19.63.

Metal funds declined on Tuesday.

Mining ETFs were mixed during the day.

Gold stocks were mixed on Tuesday.

Silver mining shares mostly retreated during the day.

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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