Gold and Silver Dip in Market Pullback
Both precious metals declined as the broad market suffered a pullback. Earnings season and a stronger U.S. dollar amid weak economic data are weighing on asset prices. The National Association of Realtors said that existing home sales declined 1.7 percent in September to a seasonally adjusted annual rate of 4.75 million units. The figure matched the median forecast in a Reuters poll, but considering that inventory levels are at their lowest in over four years, the results were not encouraging.
In afternoon trading, the U.S. dollar index climbed to as high as 79.66, as the euro sank lower. Following the European Summit meeting among leaders, ratings agency Fitch said the pressure has increased on the region’s policy makers “to deliver substantial progress” by December, when they meet again.
Heading into the close, the SPDR Gold Trust (NYSEARCA:GLD) declined about 1.10 percent, while the iShares Silver Trust (NYSEARCA:SLV) fell 2.05 percent. However, gold miners (NYSEARCA:GDX) such as Yamana Gold (NYSE:AUY) and Goldcorp (NYSE:GG) both edged slightly higher. Silver names such as Silver Wheaton (NYSE:SLW) and First Majestic Silver (NYSE:AG) declined 0.20 percent and 0.50 percent, respectively.
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Disclosure: Long EXK, AG, HL, PHYS