UPDATE: Gold Under Heavy Pressure, Breaks Below $1500/ounce
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(Updated - April 12, 2013 11:25 AM EDT)
(Updated - April 12, 2013 11:12 AM EDT)
Gold was pressured early on Friday after prices breached support at $1540 per ounce. The slide put gold stocks in the hot seat, with shares of Barrick Gold Corporation (NYSE: ABX), Newmont Mining Corp. (NYSE: NEM), Goldcorp Inc. (NYSE: GG), Silver Wheaton Corp. (NYSE: SLW) and Yamana Gold, Inc. (NYSE: AUY) all coming under pressure.
The decline comes amid renewed chatter about Fed tightening following FOMC minutes released earlier this week. The minutes revealed that several members of the committee favor halting of QE by the end of the year. However, compared to today's move, the immediate reaction to the minutes was relatively muted. Yesterday rumors broke that Cyprus would consider selling some of its gold holdings.
Oil and other commodities are also under pressure this Friday.
Speaking on CNBC UBS floor trader Art Cashin said investors were worried about the possibility of deflation.
Update: Analyst at BofA ML predict a rapid acceleration to $1396- $1450 before gold will see "renewed basing potential."
Gold trades at $1498 per ounce. WTI trades just above $90. Gold ETF (NYSE: GLD) is down 4 percent. iShares Silver Trust (NYSE: SLV) is lower by 5.25 percent.
(Updated - April 12, 2013 11:12 AM EDT)
Gold was pressured early on Friday after prices breached support at $1540 per ounce. The slide put gold stocks in the hot seat, with shares of Barrick Gold Corporation (NYSE: ABX), Newmont Mining Corp. (NYSE: NEM), Goldcorp Inc. (NYSE: GG), Silver Wheaton Corp. (NYSE: SLW) and Yamana Gold, Inc. (NYSE: AUY) all coming under pressure.
The decline comes amid renewed chatter about Fed tightening following FOMC minutes released earlier this week. The minutes revealed that several members of the committee favor halting of QE by the end of the year. However, compared to today's move, the immediate reaction to the minutes was relatively muted. Yesterday rumors broke that Cyprus would consider selling some of its gold holdings.
Oil and other commodities are also under pressure this Friday.
Speaking on CNBC UBS floor trader Art Cashin said investors were worried about the possibility of deflation.
Update: Analyst at BofA ML predict a rapid acceleration to $1396- $1450 before gold will see "renewed basing potential."
Gold trades at $1498 per ounce. WTI trades just above $90. Gold ETF (NYSE: GLD) is down 4 percent. iShares Silver Trust (NYSE: SLV) is lower by 5.25 percent.
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