Both precious were relatively quiet, but still outperformed the broad equity market as Congress returned to the great “fiscal cliff” debate. Furthermore, investors are still awaiting news from Europe and the latest update on Greece’s much needed financial aid package.
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With global economic uncertainties and physical demand for gold, downside in the precious metal looks small to Barclays. The financial firm explains in a note, “Prices are likely to continue to search for triggers from the macro and geopolitical environment, but the downside rests with the physical market and central bank buying, with the latter looking more supportive.” Barclays adds, “Ultimately we are looking for a test and break above the range highs near $1,800 to confirm our broader bullish view for a move to the record highs near $1,921.”
By the end of the day, the SPDR Gold Trust (NYSEARCA:GLD) finished 0.11 percent lower, while the iShares Silver Trust (NYSEARCA:SLV) gained 0.12 percent. Barrick Gold (NYSE:ABX), the world’s largest gold producer, fell 0.79 percent. However, shares of Yamana Gold (NYSE:AUY) managed a modest 0.10 percent gain. Silver miners (NYSEARCA:SIL) such as Endeavour Silver (NYSE:EXK) and Coeur d’Alene Mines (NYSE:CDE) both fell nearly 2.0 percent.
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Disclosure: Long EXK, AG, HL, PHYS