Gold and Silver Continue to Struggle Amid Market Pullback


On Monday, gold (NYSEARCA:GLD) futures for August delivery, the most active contract, fell $14.90 to close at $1,277.10 per ounce, while silver (NYSEARCA:SLV) futures for September dropped 48 cents to finish at $19.52.

Both precious metals declined as the market continues to speculate about the Federal Reserve dialing down its bond-buying programs. Furthermore, concerns about liquidity in China continue to rise, as The People’s Bank of China told the nation’s largest banks to reduce risky loans.

Last week, the rate at which Chinese banks lend to each other overnight hit a record high above 13 percent, adding to credit crunch worries.

The Shanghai Composite closed at its lowest level of the year, while all three major U.S. stock indices closed in the red.

By the end of the day, the SPDR Gold Trust (NYSEARCA:GLD) declined 0.90 percent, while the iShares Silver Trust (NYSEARCA:SLV) dropped 2.20 percent. Gold miners (NYSEARCA:GDX) such as Yamana Gold (NYSE:AUY) and Newmont Mining (NYSE:NEM) fell 4.90 percent and 3.40 percent, respectively. Shares of Endeavour Silver (NYSE:EXK) plunged more than 10.0 percent.

According to Bloomberg, Barrick Gold plans to cut around 100 office jobs. The world’s largest gold producer is making the move because of the “challenging business environment.” The reductions could total as much as 30 percent of the miner’s total number of corporate office positions.

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Disclosure: Long EXK, AG, HL, PHYS