Gold and Silver Decline, Dollar Higher for 11th Consecutive Day
By Eric McWhinnie | May 15, 2012 12:44 AM IST
On Monday, gold (NYSEARCA:GLD) futures for June delivery fell $23 to settle at $1,561 per ounce, its lowest close of the year. Meanwhile, silver (NYSEARCA:SLV) futures declined 54 cents to close at $28.35.
Both precious metals closed lower as the U.S. dollar extended its winning streak to 11 consecutive days. Talks between potential coalition partners on creating a new government in Greece collapsed over the weekend and weighed on financial markets. The euro fell to as low as $1.2826 on Monday.
“All the talk is about the growing chances of a Greek exit from the euro but it is not obvious that the euro would sell off if it actually occurred,” Mitul Kotecha, head of global foreign exchange strategy at Crédit Agricole, said in a report. “Eventually a Greek exit would lead to speculation of a similar fate for Portugal, Ireland or even Spain which could keep the euro under prolonged pressure,” he explained.
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In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) declined 1.26 percent, while the iShares Silver Trust (NYSEARCA:SLV) dropped 2.10 percent. Gold miners (NYSEARCA:GDX) such as Yamana Gold (NYSE:AUY) and Barrick Gold (NYSE:ABX) fell 3.17 percent and .90 percent, respectively. Silver investments such as Silver Wheaton (NYSE:SLW) and Endeavour Silver (NYSE:EXK) fell 7.03 percent and 4.31 percent, respectively.
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