Gold and Silver Begin Week in the Red
Both precious metals began the trading day in the red and added to losses as the U.S. dollar index bounced off the intra-day low of 82.22. The dollar received a modest boost as Dow Jones reported that another lawsuit was filed in Germany against Europe’s bailout fund, the European Stability Mechanism.
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The legal action could delay Europe’s plan to address the sovereign debt crisis. On September 12, the German court is scheduled to decide the constitutionality of the ESM.
In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) declined 0.57 percent, while the iShares Silver Trust (NYSEARCA:SLV) fell 1 percent. Gold miners (NYSEARCA:GDX) such as Barrick Gold (NYSE:ABX) and Newmont Mining (NYSE:NEM) both dropped more than 1 percent. Silver names such as Silver Wheaton (NYSE:SLW) ticked slightly higher, while Coeur d’Alene Mines (NYSE:CDE) decreased 1.15 percent.
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Disclosure: Long EXK, AG, HL, PHYS