Gold and Silver Pullback Ahead of BIG Bernanke Speech
Both precious metals edged lower for the third consecutive day, as the U.S. dollar index turned higher on negative European headlines. The International Monetary Fund announced it is not working on a financial aid program for heavily indebted Spain, and pointed towards the region’s central bank to take action. Spain is reportedly postponing a request for a bailout until aid conditions are worked out more.
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“Clearly…Spain’s prospects would be helped by further progress at the European level,” said IMF spokesman Gerry Rice, when asked if Germany’s opposition to European Central Bank buying bonds of ailing members was harming the euro’s future, according to Dow Jones Newswires. The dollar index climbed to as high as 81.75, while the euro touched below $1.25.
In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) edged slightly higher, while the iShares Silver Trust (NYSEARCA:SLV) declined 0.76 percent. Gold miners (NYSEARCA:GDX) such as Barrick Gold (NYSE:ABX) and Newmont Mining (NYSE:NEM) increased 0.40 percent and 0.31 percent, respectively. Silver names such as Endeavour Silver (NYSE:EXK) and Silver Wheaton (NYSE:SLW) both fell more than 1 percent.
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Disclosure: Long EXK, AG, HL, PHYS