Gold Slips on Bearish Forecast

Gold fell slightly in light Wednesday trading, marking its second straight losing session.

Gold Silver GLD IAU SLV

Investor interest in the precious metal was diminished after Morgan Stanley (MS) slashed its 2014 average price target for gold to $1,160 per ounce, down 11.6% from its previous outlook. The bank also cut its average gold price forecast for 2015 by 12.5%. Morgan Stanley analysts indicated that gold would continue to fade as long as U.S. equities climb.

Gold futures for February delivery sank 0.3% to $1,238.60 per ounce on Wednesday, according to CME Group. Gold traded as high as $1,243.50 and as low as $1,237.40. Bullion closed in London at $1,238, according to BullionVault.

Silver futures for March delivery dipped 0.2%, to $19.84 per ounce. Wednesday’s high for silver was $19.94, while the low was $19.77.

Metal funds sank on Wednesday.

  • The SPDR Gold Shares (GLD) slid 0.4%.
  • The iShares Gold Trust (IAU) dipped 0.4%.
  • The iShares Silver Trust (SLV) fell 0.7%.

Mining ETFs declined during the day.

  • The Market Vectors Gold Miners ETF (GDX)  dropped 2.5%.
  • The Market Vectors Junior Gold Miners ETF (GDXJ) tumbled 4.8%.
  • The Global X Silver Miners ETF (SIL) sank 3%.

Gold stocks pulled back on Wednesday.

  • Agnico-Eagle Mines (AEM) dropped 4.1%.
  • Barrick Gold (ABX) fell 2.3%.
  • Eldorado Gold (EGO) slid 1.7%.
  • Goldcorp (GG) waned 2%.
  • Kinross Gold (KGC) sank 3.5%.
  • Newmont Mining (NEM) faded 1.7%.
  • NovaGold Resources (NG) tumbled 5.1%.
  • Yamana Gold (AUY) moved down 2.8%.

Silver mining shares retreated during the day.

  • Coeur d’Alene Mines (CDE) fell 1.2%.
  • Hecla Mining (HL) slipped 1.8%.
  • Pan American Silver (PAAS) dropped 2.1%.
  • Silver Wheaton (SLW) declined 2.1%.
  • Silver Standard Resources (SSRI) sank 1.7%.

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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