Gold was down 1% and silver down nearly 1.5% in Friday morning trading, as
eurozone sovereign debt concerns, rumors of S&P credit downgrades and JPMorgan s
(NYSE: JPM ) disappointing earnings report overwhelmed a higher-than-expected
reading of U.S. consumer sentiment. Spot gold was trading about 1% lower at 11
a.m., with a bid price of $1,632.40 per ounce and an ask price of $1,633.40.
Spot gold traded as high as $1,643.50 and as low as $1,624.20. The London
afternoon reference price fix came in at $1,635.50, $25.50 per ounce lower than
Thursdays reference price, according to Kitco market data . Spot silver was down
1.45%, bid at $29.81 per ounce with an ask price of $29.91. The morning high as
of time of writing was $30.01 and the low was $29.36. Fridays reference price
was set at $29.64 in the London a.m., 94 cents per ounce lower than yesterdays
price fix. Rumors that Standard & Poors is going to downgrade government debt of
several eurozone countries sent all risk assets downward despite news that the
Thomson Reuters/University of Michigan consumer sentiment index rose to 74 in
January, its highest level since May. A negative for gold and silver in
particular, the euro weakened against the dollar. The yield on new Italian
three-year bonds fell below 5% for the first time since September, but the
Italian treasury was only able to sell half the 10 billion euros Spain sold
yesterday at far lower yields than Italy promised to pay investors today. Gold
prices hit a low of $1,637 per ounce in London morning trading Friday, 1.4% off
Thursdays high , though the gold price in euros gained throughout morning
trading, hitting 1,285 euros per ounce, BullionVault reported in its London Gold
Market Report. We feel the market is once again comfortable with gold,
ScotiaMocatta wrote in its latest technical analysis report, but will liquidate
on a break of $1,605. Gold prices were up 1.5% heading into the weekend and up
4.7% over the last two weeks based on London p.m. fix prices. This would mark
golds biggest two-week gain since the two-week period ended Nov. 4, according to
BullionVault s Adrian Ash. Gold and silver trusts were showing losses in Friday
morning activity on U.S. exchanges. The SPDR Gold Trust (NYSE: GLD ) was showing
losses of more than 0.9%. The iShares Gold Trust (NYSE: IAU ) was down nearly
0.9%. The iShares Silver Trust (NYSE: SLV ) was down more than 1%. Gold and
silver mining ETFs also were moving sharply lower. The Market Vectors Gold
Miners ETF (NYSE: GDX ) was showing losses of around 1.9%. The Market Vectors
Junior Gold Miners ETF (NYSE: GDXJ ) was down 2.2%. The Global X Silver Miners
ETF (NYSE: SIL ) was down more than 1.6%. Gold mining shares were showing sharp
losses for the most part as well. Agnico-Eagle Mines (NYSE: AEM ) was showing
losses of around 3%. Barrick Gold (NYSE: ABX ) was down more than 2%. Eldorado
Gold (NYSE: EGO ) was down more than 2%. Goldcorp (NYSE: GG ) was up 1.35%.
Newmont Mining (NYSE: NEM ) was up just shy of 0.8%. NovaGold Resources (AMEX:
NG ) was down nearly 1.4%. Yamana Gold (NYSE: AUY ) was down more than 0.4%.
Silver mining shares also were showing mostly steep losses. Coeur dAlene Mines
(NYSE: CDE ) was moving lower, down nearly 1.9%. Hecla Mining (NYSE: HL ) was
down around 2.5%. Pan American Silver (NASDAQ: PAAS ) was down some 0.7%. Silver
Wheaton (NYSE: SLW ) was showing losses of 1.5%. Silver Standard Resources
(NASDAQ: SSRI ) was down around 3.4%. As of this writing, Andrew Burger did not
hold a position in any of the aforementioned securities. Adrian Ash of
BullionVault contributed to this report.
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