Published August 28, 2013
| Wall St. Cheat Sheet
On Wednesday, gold (NYSEARCA:GLD) futures for December — the most active contract –dipped $1.40 to close at $1,418.80 per ounce, while silver (NYSEARCA:SLV) futures declined 26 cents to finish at $24.40.
Both precious metals were relatively quiet as the real estate market received another disappointing report. The Pending Home Sales Index, a forward-looking indicator based on contract signings, fell 1.3 percent to 109.5 in July compared to 110.9 in June, according to the National Association of Realtors. After posting its strongest pace since 2006 in May, the index has now declined for two consecutive months.
The weaker-than-expected report was the latest economic news to keep the market guessing about the Federal Reserve’s bond programs and whether the central bank will dial down its monthly purchases. Meanwhile, signs of war continue to surround Syria. A senior American official told NBC News that, “we’re past the point of no return,” and military action will soon follow.
In an interview with Reuters, legendary investor Jim Rogers explains what investments will likely go higher if the United States goes to war once again. He said, “I own oil, I own gold, I own things like that and if there is going to be a war, and it sounds like America is desperate to have a war, they’re going to go much, much higher. Stocks are going to go down, some of the markets that I’m short are already going down, commodities are going to go up. I mean, yeah, some of the things I own all make a lot of money. I’m not particularly keen on war, I assure you, but it sounds like they want it.”
By the end of the trading day, shares of the SPDR Gold Trust (NYSEARCA:GLD) closed flat while the iShares Silver Trust (NYSEARCA:SLV) declined 0.70 percent. Gold miners (NYSEARCA:GDX) Newmont Mining (NYSE:NEM) and Yamana Gold (NYSE:AUY) both fell more than 2 percent. Shares of Endeavour Silver (NYSE:EXK) sank 4.7 percent.
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Disclosure: Long EXK, AG, HL, PHYSRead the original article from Wall St. Cheat Sheet