Gold, Silver Shares Retreat, XAU Slides 1.7%
By jturbin | November 28, 2012 7:45 AM EST
Gold and silver stocks extended their losses Tuesday afternoon alongside the broader equity markets amid rising concerns over the U.S. fiscal cliff situation. The Philadelphia Gold & Silver Index (XAU) fell by 1.7% to 171.05 while the S&P 500 Index dropped by as much as 0.5% to 1,399.00.
Within the sector, widely-traded names in the red included XAU components Gold Fields (GFI), IAMGOLD (IAG), and Pan American Silver (PAAS). Shares of GFI slipped by 2.8% to $11.84, IAG by 2.1% to $11.87, and PAAS by 1.2% to $19.11.
(Check out GoldAlert Pro at http://pro.goldalert.com for rankings, price targets, upgrades and downgrades on over 90 gold and silver stocks)
Equities as a whole headed south after Harry Reid, the U.S. Senate House Majority leader, stated that policymakers have made “little progress” in negotiations aimed at avoiding the fiscal cliff – the billions in automatic spending cuts and tax increases scheduled to begin in 2013.
Precious metals declined as well, with COMEX gold futures for December delivery settling down by $7.30, or 0.4%, at $1,742.30 per ounce. Silver futures largely mirrored the yellow metal, as the COMEX December contract closed with a loss of $0.16, or 0.5%, at $33.98 per ounce.
Commenting on the outlook for the gold market, analysts at HSBC contended that “With much trading activity gravitating around the $1,750 an ounce level, we anticipate the expiration will be modestly price-positive for gold. Beyond that, we believe gold and silver prices will tend toward consolidation, as investors await further developments on the U.S. fiscal-cliff negotiations.”
Most Popular Slideshows
- Prince William & Kate Middleton Caught Flirting In A Countryside Dinner Date [PHOTOS]
- Kate Middleton’s Mom Accused Of Being A Social Climber, Prince George Not Seen By Relatives
- Prince William & Kate Middleton Boards London Train in Casual Disguise, Royal Couple’s Incognito Plan A Huge Hit [PHOTOS]
- Angelina Jolie & Brad Pitt’s Top Secret Wedding Tramps Jennifer Aniston’s ‘Friends’ Reunion & Pregnancy Talks [PHOTOS]
Join the Conversation
- 5.5-Inch iPhone 6 is iPhone Air on Sept 19 Release Date: 5 Things to Consider Before Buying
- Pricey iPhone 6 on Release Date Likely but with 3X Retina Resolution & Mobile Payment Service – Reports
- Nexus 6 Release Date Update: Moto X+1 Look Leaked, Nexus X or Shamu Moved to Demo Phase
- Google Nexus 8 Confirmed as HTC T1 aka Volantis/Flounder with Freshly-Leaked Specs & Features – Reports
- Europe, US Next on ISIS’ Hit List, Says Saudi King; Seized ISIS Laptop Reveals Terrifying Bio-Warfare Plans
- iPhone 6 On Release Date To Feature Qualcomm MDM9625M LTE, 1GB RAM, Mobile Payment Deal With AMEX, 1334x750 Display
- HTC One M8 for Windows Vs. Nokia Lumia Icon, The Battle Of Windows Phones