Gold Sinks Below $1400/oz (GLD) (IAU) (SLV)
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Gold futures and SPDR Gold Trust ETF (NYSE: GLD) came under pressure on Wednesday, declining 2 percent and breaking below $1400 per ounce. Subdued PPI inflation data appears to be the main cause for the decline.
The fall caused havoc among gold miners, with heavy losses in junior miners like United States Antimony Corp. (NYSE: UAMY) and larger companies like Barrick Gold Corporation (NYSE: ABX), Goldcorp Inc. (NYSE: GG), and Newmont Mining Corporation (NYSE: NEM).
With Market Vectors Gold Miners ETF (NYSE: GDX) lower by 39 percent year-to day, the decline today is nothing new. Potential Fed QE tapering, a bullish equity market, and generally dismal gold sentiment are several likely reasons for the decline in gold and highly levered gold miners.
In the coming days, investors will be keeping a close eye on hedge funds filings for clues about how the smart money is thinking, which could lead to more declines if hedge funds are seen exiting en mass.
SPDR Gold Shares ETF (NYSE: GLD) declined 2 percent on Wednesday. iShares Gold Trust ETF (NYSE: IAU) was lower by a similar amount. iShares Silver Trust ETF (NYSE: SLV) fell 2 percent.
The fall caused havoc among gold miners, with heavy losses in junior miners like United States Antimony Corp. (NYSE: UAMY) and larger companies like Barrick Gold Corporation (NYSE: ABX), Goldcorp Inc. (NYSE: GG), and Newmont Mining Corporation (NYSE: NEM).
With Market Vectors Gold Miners ETF (NYSE: GDX) lower by 39 percent year-to day, the decline today is nothing new. Potential Fed QE tapering, a bullish equity market, and generally dismal gold sentiment are several likely reasons for the decline in gold and highly levered gold miners.
In the coming days, investors will be keeping a close eye on hedge funds filings for clues about how the smart money is thinking, which could lead to more declines if hedge funds are seen exiting en mass.
SPDR Gold Shares ETF (NYSE: GLD) declined 2 percent on Wednesday. iShares Gold Trust ETF (NYSE: IAU) was lower by a similar amount. iShares Silver Trust ETF (NYSE: SLV) fell 2 percent.
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