Gold and silver were down sharply overnight and continued to shed their recent gains early Tuesday after Standard & Poor’s said Monday there was a 50-50 chance it would downgrade the credit ratings of core euro zone group governments, including France, Germany, Luxembourg and the Netherlands. The euro also was giving up its recent gains against the dollar.
Spot gold was down some 1.1%, with a bid price of $1,703.80 per ounce and an ask price of 1,704.80 at 10:15 a.m. Gold traded as high as $1,716.10 and as low as $1,701.30. The London afternoon reference price fix came in at $1,708, according to Kitco market data.
Spot silver was down 1.25%, bid at $31.68 with an ask price of $31.78. The morning high as of time of writing was $32.05 and the low was $31.52. Monday’s reference price was set at $31.85 in the London a.m.
Looking at stock market action, gold and silver trusts were moving lower.
Gold and silver mining ETFs were heading south as well.
Silver mining shares were mixed, with shares of Hecla Mining (NYSE:HL) up sharply.
As of this writing, Andrew Burger did not hold a position in any of the aforementioned stocks.