Both precious metals instantly witnessed heavy selling volume at the open, despite little news in the sector. A CME Group (NASDAQ:CME) spokesman even confirmed that “there was no fat-finger trades or technical errors, this was a market-driven selloff.” A large seller dumped more than 7,000 gold contracts on the exchange in morning trading.
Don’t Miss: Should Gold Investors Be Worried About Demand?
The broad equity market also experienced its fair amount of volatility as Washington continues to send investors on a roller coaster fiscal cliff ride. Equities were trading lower on the day, but House Speaker John Boehner said he is optimistic that a deal would be reached. President Obama also added hope by urging Congress to complete a deal by Christmas.
By the end of the day, shares of the SPDR Gold Trust (NYSEARCA:GLD) closed 1.28 percent lower, while the iShares Silver Trust (NYSEARCA:SLV) dipped 0.94 percent. However, gold miners (NYSEARCA:GDX) such as Barrick Gold (NYSE:ABX) and Yamana Gold (NYSE:AUY) both jumped more than 1.0 percent. Silver names such as Silvercorp Metals (NYSE:SVM) and Hecla Mining (NYSE:HL) also logged gains in excess of 1.0 percent.
Investor Insight: Will the Inflation Grinch Steal Christmas?
If you would like to receive professional analysis on miners and other precious metal investments, we invite you to try our premium service free for 14 days.
Disclosure: Long EXK, AG, HL, PHYS