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
- Forever Lost: Indescribable Anguish for Malaysia Airlines MH17 Families, Remains of Some Victims May Never Be Found (PHOTOS)
- Global Aviation Accidents: UN to Form Safety Task Force, Gov'ts Should Share Intelligence Info to Avert Future Incidents on Flying Over Warzones (PHOTOS)
- Celebrities Who Got Pregnant Using IVF: Busting the Myths About IVF
- Lunch with the Gods: Pope Francis Eats with Vatican Workers in Cafeteria
Join the Conversation
- Gold in China: 127-Tonne Gold Reserves Tapped in Xinjiang
- 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
- Apple iPhone 6 Release Date Update: 6 Most Wanted Feature Upgrades for Next iPhone
- Moto X Android 4.4.4 KitKat Update Guide: Schedule and How to Install
- Top 4 Reasons Why iPhone 6 Will Hit Big Soon After its Sept 2014 Release Date
- Top Surprising Features Of iOS 8
- Twin Malaysia Airlines MH370, MH17 Aviation Disasters Create Phobia Among Travellers
- HTC One M8 Windows Phone to Launch for Verizon; Release Date, Price, Five Fresh Features to Anticipate for New Smartphone
- OnePlus One vs. Moto X+1 – Early Specifications, Release Date and Price Faceoff