Seeking Alpha

Gold, mining stocks dragged down by strength in dollar, equities

|About: SPDR Gold Trust ETF (GLD)|By:, SA News Editor

Gold futures (GLD -1.5%) settle below the $1,500/oz. level for their lowest finish in two months, as strength in the U.S. dollar and some lift in U.S. stocks and yields pulled demand away from safe-haven plays.

December Comex gold closed -2.2% to $1,472.90/oz., capping a 3.7% drop for the month, although the yellow metal gained 3.4% during Q3; December silver settled -3.7% to $16.99/oz., also the lowest since early August and capping a 7% drop in September while gaining more than 10% for the quarter.

"A strong U.S. dollar is a headwind for gold priced in U.S. dollar, however technical considerations may be more influential on today's action in the gold market," says Altavest managing partner Michael Armbruster. "Gold has formed a bearish head-and-shoulders pattern, and today's drop below the formation’s 'neckline' has likely spurred additional selling."

Shares of precious metals miners trade broadly lower: AXU -10%, SVM -9.6%, SILV -9.4%, HL -8.7%, EXK -8.7%, CDE -8.2%, USAS -8%, SMTS -8.1%, DRD -7.8%, GSS -7.7%, GORO -7.5%, FSM -6.4%, AG -6.2%, IAG -6%, MUX -6%, NGD -5.6%, AGI -5.1%, MAG -5%, KGC -4.6%, PVG -4.5%, SA -4.2%, OR -4.1%, NG -3.6%, SSRM -3.5%, AU -3.3%, SAND -3.2%, AEM -3.2%, AUY -3.2%, PAAS -3.1%, SBGL -3%, HMY -2.9%, GFI -2.9%, GOLD -2%, WPM -1.8%.

ETFs: GDX, NUGT, GDXJ, JNUG, GGN, DUST, SIL, USLV, AGQ, JDST, UGLD

Subscribe for full text news in your inbox