Gold, Silver, Miners All Head South Tuesday

The price of physical gold fell more than $20 per ounce Tuesday morning despite
a greater-than-expected increase in September U.S. producer prices another sign
that inflation is building up in the supply chain. Gold traditionally has been a
hedge against rising inflation. Slower growth in China and Europe is likely to
put a lid on further increases in inflation, however, according to several
economists. Spot gold was bid at $1,638.80 with an ask price of $1,639.80 early
Tuesday. The morning high as of this writing was $1,648.10 and the low was
$1,626.10, according to Kitco market data . The London p.m. reference price was
set at $1,631 per ounce. Spot silver was trading at $31.22 Bid, $31.32 Ask,
having hit a morning high of $31.32 and a low of $30.47. Todays reference price
was set at $31 in the London a.m. On the stock exchanges, gold and silver trusts
were sharply lower. The SPDR Gold Trust (NYSE: GLD ) was more than 2% lower. The
iShares Gold Trust (NYSE: IAU ) was down around 2%. The iShares Silver Trust
(NYSE: SLV ) was down about 2.74%. Gold and silver mining ETFs also were moving
lower. The Market Vectors Gold Miners ETF (NYSE: GDX ) was 2.9% lower. The
Market Vectors Junior Gold Miners ETF (NYSE: GDXJ ) was more than 2.1% lower.
The Global X Silver Miners ETF (NYSE: SIL ) was down nearly 2.3%. Shares of gold
miners were heading south, NovaGold Resources again the exception. Agnico-Eagle
Mines (USA) (NYSE: AEM ) was around 2.5% lower. Barrick Gold Corp. (NYSE: ABX )
was down some 2.4%. Goldcorp (NYSE: GG ) was down around 2.3%. Newmont Mining
Corp. (NYSE: NEM ) was nearly 2.2% lower. NovaGold Resources (USA) (AMEX: NG )
was showing gains of around 0.4%. Silver miners shares were showing the biggest
losses for the second consecutive morning. Coeur DAlene Mines Corp. (NYSE: CDE )
was around 1% lower. Hecla Mining (NYSE: HL ) also was down more than 1%. Pan
American Silver Corp. (USA) (NASDAQ: PAAS ) was about 2.9% lower. Silver Wheaton
Corp. (USA) (NYSE: SLW ) was down more than 4.3%. Silver Standard Resources Inc.
(USA) (NASDAQ: SSRI ) was down nearly 4%. As of this writing, Andrew Burger did
not own a position in any of the aforementioned stocks.