Precious Metals Remain Under Pressure, XAU Falls 2.5%
November 16, 2012 8:45 AM EST
Precious metals remained firmly in negative territory on Thursday afternoon amid widespread weakness in the commodities complex. COMEX gold futures settled lower by $16.30, or 0.9%, at $1,713.80 per ounce. Silver futures at the COMEX fared a bit better, finishing down by only $0.21, or 0.6%, at $32.67 per ounce.
Gold and silver shares underperformed the metals, as the Philadelphia Gold & Silver Index (XAU) retreated by 2.5% to 164.36. In doing so, the XAU stretched its loss thus far in November to 12.7% and reached its lowest level since August 31st.
A few of the worst performing XAU components on Thursday were Agnico-Eagle Mines (AEM), New Gold (NGD), and Silver Standard Resources (SSRI). Shares of AEM fell by 5.0% to $51.63, NGD by 4.5% to $9.66, and SSRI by 3.5% to $12.88.
(Rankings and analysis on every XAU component available at GoldAlert Pro – http://pro.goldalert.com)
Today’s decline in the price of gold was not accompanied by strength in the U.S. dollar, however. Instead, it was in large part driven by a report from the World Gold Council (WGC), according to Richard Hastings, a strategist at Global Hunter Securities.
In a note to clients, Hastings wrote that “A weak demand summary from the World Gold Council partly influenced by very tough year-over-year comparisons to the big runup in gold demand associated with the U.S. budget fiasco in August 2011” was the driving force behind the sell-off.
Specifically, the WGC disclosed that global demand for gold dropped by 11% to 1,084.6 tonnes in the third quarter of 2012 relative to the third quarter of last year. The report cited lower demand from China as well as a reduction in jewelry demand for the yellow metal.
On the positive side, however, the report noted that global investment in exchange-traded funds surged by 56% from the prior year period. Marcus Grubb – managing director, investment at the World Gold Council – commented that “It is clear from five-year rising demand trends that gold’s fundamental property as a vehicle for capital preservation continues to endure, as evidenced by this quarter’s increase in global ETF investment…and continued purchasing by central banks, the ultimate long-term investors.”
Among other precious metals, platinum futures dropped by 1.5% to $1,571.30 per ounce while palladium slid 1.6% to $634.15 per ounce. As for cyclical commodities, crude oil futures declined by 1.0% to $85.45 per barrel while copper bucked the trend to close up by 0.3% at $3.46 per pound.
Copyright Gold Alert All rights reserved.
Most Popular Slideshows
- Typhoon Rammasun Claims 18 Lives in China, Incurs $4.32B Losses (PHOTOS)
- Malaysia Airlines MH17: Vital Black Boxes Finally Land in Hands of Malaysian Authorities, Rebels Announce Ceasefire (PHOTOS/VIDEOS)
- Kate Middleton's Pregnancy Hearsays: Possible Evidence Revealed [PHOTOS]
- Selena Gomez Turns 22 Today, Celebrates Early without Justin Bieber: Top 12 Interesting Facts About the Singer [SEE PHOTOS]
Join the Conversation
- Global Markets Overview – July 15, 2014
- Honduran Gold Mine Caves in; 8 Rescued, 3 Remain Trapped (PHOTOS)
- Chinese Govt Tightens Control on Gold to Curb Imports, Could Drop 400T from 2013 – Report
- ANZ Seeks Role in Pilot Global Gold Trading Platform in Shanghai
- US California Couple Sells 1,400 Rare Gold Coins Found in Backyard, Now Millionaires
- Fresh Leak Hints iPhone 6 Price and Release Date; 4.7-Inches iPhone 6 Sapphire Display Scratched in Test; New Spigen Cases Out
- iPhone 6 2014 Release Date Very Soon as Apple Orders 120M New iPhones from Foxconn – Report
- Google Nexus 6 on Release Date Will Sport 2K Display Panel & Lower Price Tag – Report
- Motorola Moto G Vs. Xiaomi Mi3 – Low in Price, High -level Features
- FCC Approves Sony Xperia Z3 for U.S. Market
- Killer Xiaomi Mi4 at $369 Likely to Come With 5.0-Inch Display, Snapdragon 801 Processor, 3GB RAM and More
- Sony PlayStation 4 Outsells a Resurgent Xbox One in June