Gold Retreats as Debt Talks Make Progress
After a ten day run of consecutive gains that sent gold (NYSE:GLD) futures to an all-time high in prices yesterday, closing at over $1,60o per ounce, today the yellow metal finally gave back some of its recent momentum, closing down $1.30 or .01%. Following President Obama’s announcement that he and Senate leaders were in accord in their endorsement of a revived debt deal that features a higher debt ceiling and fiscal spending cuts of $3.5 trillion, gold prices sold off quickly, losing $15 in futures value. Insiders say that today’s downturn will test whether gold’s gains are here to stay or if the bid up in price was temporary, and not backed by any real merit. Futures analyst Frank Lesh said, “We are taking a pause. The market was bid up … and you can only go so far before you want some evidence that you need to be long in this market.”
Silver (NYSE:SLV), which has traded with more volatility than gold in recent months, also gave back much of its recent gains, losing -3.27% in trading to settle at just over $40 per ounce. Other metals fared better, particularly Copper, which gained 1.5% on news that housing starts were actually up in June. Platinum and Palladium both lost some value in trading today, closing down -.27% and -.58% respectively.