After a rebound yesterday, gold and silver both declined today. Gold (NYSE:GLD) futures for December delivery fell nearly $42 to settle at $1,616 per ounce, while silver (NYSE:SLV) futures declined 95 cents to close under $30. Today’s decline in gold was the first in three trading sessions.
Investing Insights: Did the Gold and Silver Plunges Shakeout the Weak?
Despite Goldman Sachs (NYSE:GS) cutting its 12 month forecast of copper to $9,500 per ton, down from $11,000 per ton, shares of Freeport-McMoRan Copper & Gold (NYSE:FCX) rallied as much as 3% today. However, gold and silver miners suffered more declines on Tuesday. The Market Vectors Gold Miners ETF (NYSE:GDX) and Junior Gold Miners ETF (NYSE:GDXJ) both traded nearly 6% lower heading into the closing bell. Silver miners (NYSE:SIL) such as First Majestic (NYSE:AG) and Endeavour Silver (NYSE:EXK) both traded sharply lower.
Did You Hear That? Federal Reserve Chairman Ben Bernanke said today that the central bank is prepared to take additional steps to boost U.S. economic growth, while he cautioned lawmakers against making moves to balance the budget that would harm recovery efforts. The Fed “will continue to closely monitor economic developments and is prepared to take further action as appropriate to promote a stronger economic recovery in a context of price stability,” said Bernanke when giving testimony before Congress’s Joint Economic Committee in Washington this morning. After Bernanke’s statement, the US dollar (NYSE:UUP) fell of its highs, but not enough to produce gains in gold and silver.