Gold Down After July Retail Sales Report

Gold prices were trending lower, moving from just under $1,770 to around $1,750
per ounce, in electronic, Asia-Pacific and London trading overnight and into
Friday, having dropped about $60 per ounce Thursday. More downward pressure came
into play early Friday in New York after the release of U.S. retail sales for
July, which rose 0.5%, a four-month high. The Commerce Department also revised
June retail upward to 0.3%. To stem heightened volatility in the markets, EU
stock exchanges banned the short selling of stocks while the CME raised margin
requirements on Comex gold futures in response to recent sharp drops in the
former and a sharp rise to nominal record highs in the latter. Spot gold was
trading $1,735.90 Bid, $1,736.90 Ask. The London PM gold fix came in at $1,736
an ounce. Spot silver was trading $38.67 Bid, $38.77 Ask, the London AM fix set
at $38.29, according to Kitco market data . Taking a look at exchange trading,
gold and silver trusts were heading lower early Friday. The SPDR Gold Trust
(NYSE: GLD ) was down more than 1%. The iShares Gold Trust (NYSE: IAU ) was down
more than 1%. The iShares Silver Trust (NYSE: SLV ) was 0.15% lower. Gold and
silver mining ETFs also were lower. The Market Vectors Gold Miners ETF (NYSE:
GDX ) was down 1%. The Market Vector Junior Gold Miners ETF (NYSE: GDXJ ) was
off around 2.2%. The Global X Silver Miners ETF (NYSE: SIL ) was trading around
0.1% lower. Shares of gold miners were showing losses of about 1% to 2% early
Friday. Agnico Eagle Mines (USA) (NYSE: AEM ) was off more than 1.6%. Barrick
Gold Corp. (NYSE: ABX ) was around 1% lower. Goldcorp (NYSE: GG ) was more than
2% lower. Newmont Mining Corp. (NYSE: NEM ) was down about 1.2%. NovaGold
Resources (USA) (AMEX: NG ) was nearly 2% lower. Silver mining shares were
showing losses across the board early Friday. Coeur DAlene Mines Corp. (NYSE:
CDE ) was off 0.7%. Hecla Mining (NYSE: HL ) was nearly 2.3% lower. Pan American
Silver Corp. (USA) (NASDAQ: PAAS ) was off more than 1.5%. Silver Wheaton Corp.
(USA) (NYSE: SLW ) was more than 0.5% lower. Silver Standard Resources Inc.
(USA) (NASDAQ: SSRI ) was down more than 2%. The author does not hold positions
in any of the above-mentioned investments.