On Wednesday, gold (NYSEARCA:GLD) futures for February delivery, the most active contract, declined $3.00 to settle at $1,667.70 per ounce, while silver (NYSEARCA:SLV) futures for March dropped 55 cents to close at $31.12.
Both precious metals declined, despite the U.S. dollar index, which compares the greenback in a basket against six other fiat currencies, edging slightly lower. In early morning trading, the euro reached its highest level against the dollar since April.
Gold and silver have struggling recently, with gold trading near multi-month lows. However, gold is still on pace to finish higher for the twelfth consecutive year. Jim Rogers, legendary commodities investor, does not believe the pullback is unwarranted.
In an interview with CNBC, he explains, “Gold is having a correction— it’s been correcting for 15-16 months now— which is normal in my view, and it’s possible that the correction is going to continue for a while longer.” He adds, “Most things correct 30 percent every year or two, even in big bull markets – 30 percent corrections are normal and yet gold has only done that once in the past 12 years. Gold on any kind of historic market basis is overdue for a nice correction.”
In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) edged 0.30 percent lower, while the iShares Silver Trust (NYSEARCA:SLV) fell 1.75 percent. Gold miners (NYSEARCA:GDX) such as Barrick Gold (NYSE:ABX) and Newmont Mining (NYSE:NEM) declined 0.40 percent and 0.90 percent, respectively. Hecla Mining (NYSE:HL) dropped 1.65 percent, but First Majestic Silver (NYSE:AG) jumped 2.05 percent.
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Disclosure: Long EXK, AG, HL, PHYS