Gold prices were hitting the skids Wednesday as speculators cashed in their bullion positions to meet margin calls in the wake of the previous day's stock market selloff.
August-dated gold contracts were tumbling $8.90 at $675.90 an ounce on the Comex division of the New York Mercantile Exchange. Silver was diving also, off 25 cents at $13.20 an ounce. The exchange-traded funds that hold stores of the precious metals, streetTracks Gold Shares(GLD) and iShares Silver Trust (SLV), were in the red. The bullion decline began late Tuesday as the Dow Jones Industrial Average started its 226-point plunge. "Any time you have market a slide of that magnitude, there are going to be some margin calls and the need by speculators to raise cash," says Jon Nadler, an analyst at Montreal bullion dealer Kitco. "Aside from that, I think people saw more resilience of the dollar. It starts to look like a pivotal level. It might not be long before people start activity supporting it."TheStreet Premium Services For Personal Service: 877-471-2967
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| Dow Jones | S&P 500 | NASDAQ | 10-Year Note | |
|---|---|---|---|---|
| 12,890.46 | 1,351.95 | 2,927.23 | 20.47 |
Oil *
118.75
|
|
UP
6.51 |
UP
1.99 |
UP
11.37 |
UP
0.72 |
10 Yr
2.05%
SPDR Gold
168.02
|
|
+0.05%
|
+0.15%
|
+0.39%
|
+3.65%
|
Data delayed 20 minutes |
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