Gold Price Retreats, Turns Lower in November
By jturbin | November 16, 2012 3:11 AM EST
GOLD PRICE NEWS – The gold price headed south on Thursday following four consecutive trading days of tepid movement in precious metals. The spot price of gold initially held near $1,725 per ounce, but sunk to as low as $1,704.52 amid heavy volume at the COMEX. However, as morning trading progressed, the gold price pared its losses by bouncing back to near $1,714. The SPDR Gold Trust (GLD), the world’s largest gold ETF and a proxy for the price of gold, dropped by $1.08 to $166.06 per share.
Silver followed a similar path to that of the gold price, as it tumbled from an overnight high of $32.76 to as low as $32.15 per ounce. Nonetheless, silver subsequently rebounded to near $32.45 per ounce to remain lower by $0.24, or 0.7%. With today’s sell-off in precious metals, the price of gold moved into negative territory on a month-to-date basis by 0.4%, while silver cut its gain in November to 0.5%.
The recent weakness in gold stocks continued on Thursday amid the slid in the price of gold, as the Market Vectors Gold Miners ETF (GDX) fell by as much as $1.09, or 2.3%, to $46.45 per share. In doing so, the gold stocks ETF extended its loss this month to 12.8% and reached its lowest level since August 31st.
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Within the gold sector, notable decliners included GDX components Eldorado Gold (EGO), IAMGOLD (IAG), and Yamana Gold (AUY). Shares of EGO dropped by 2.0% to $14.20, IAG by 3.8% to $11.51, and AUY by 2.2%, to $18.39.
Gold prices reacted negatively this morning despite a mixed bag of U.S. economic data. Several key reports were released – including weekly jobless claims, which at 439,000 came in well above the 375,000 consensus estimate among economists. However, the Bureau of Labor noted that the data was skewed by Hurricane Sandy and the fact that the latest figures included two weeks of claims from the state of New York.
In addition to the latest unemployment data, the Consumer Price Index (CPI) for October rose 2.2% on a year-over-year basis – slightly higher than the 2.1% economists were expecting. While inflation ticked up, the Philadelphia Fed Index – a closely-watched gauge of manufacturing activity – fell to negative 10.7, substantially missing the positive 2.0 median estimate among economists.
As for the broader financial markets, equities across Europe remained modestly lower while U.S. exchanges oscillated between gains and losses. In the currency markets, the U.S. Dollar Index inched lower by 0.1% to 80.978 while the euro rose by 0.5% to 1.2793 against the greenback.