The price of physical gold fell more than $20 per ounce Tuesday morning despite a greater-than-expected increase in September U.S. producer prices — another sign that inflation is building up in the supply chain. Gold traditionally has been a hedge against rising inflation. Slower growth in China and Europe is likely to put a lid on further increases in inflation, however, according to several economists.
Spot gold was bid at $1,638.80 with an ask price of $1,639.80 early Tuesday. The morning high as of this writing was $1,648.10 and the low was $1,626.10, according to Kitco market data. The London p.m. reference price was set at $1,631 per ounce.
Spot silver was trading at $31.22 Bid, $31.32 Ask, having hit a morning high of $31.32 and a low of $30.47. Today’s reference price was set at $31 in the London a.m.
On the stock exchanges, gold and silver trusts were sharply lower.
Gold and silver mining ETFs also were moving lower.
Shares of gold miners were heading south, NovaGold Resources again the exception.
Silver miners’ shares were showing the biggest losses for the second consecutive morning.
As of this writing, Andrew Burger did not own a position in any of the aforementioned stocks.