On Thursday, gold (NYSEARCA:GLD) futures for December — the most active contract — dropped $10.30 to close at $1,296.90 per ounce, while silver (NYSEARCA:SLV) futures remained flat at $21.90. Major exchanged-traded funds, like the SPDR Gold Trust and the iShares Silver Trust, were also relatively quiet.
Gold and silver received little attention from investors as stocks rallied across the board. Signs of hope finally surfaced that Washington, D.C. is starting to work on a fiscal compromise. House Republican leaders offered President Obama a six-week extension on the looming national debt ceiling. In return for the temporary increase, they want the president to negotiate on a longer-term plan.
Speaker John Boehner (R-Ohio) told reporters, “It is our hope that the president will look at this as an opportunity and a good-faith effort on our part to move halfway, halfway to what he’s demanded in order to have these conversations begin.”
Although the short-term increase in the debt ceiling does not include plans to end the partial government shutdown, White House press secretary Jay Carney said the Republican plan was “encouraging.” He also said that Obama would likely sign a short-term bill as long as it is clean.
By the end of the trading, shares of the SPDR Gold Trust (NYSEARCA:GLD) and iShares Silver Trust (NYSEARCA:SLV) both declined more than 1 percent. Gold miners (NYSEARCA:GDX) Newmont Mining (NYSE:NEM) and Yamana Gold (NYSE:AUY) dropped 0.80 percent and 3 percent, respectively. However, Barrick Gold (NYSE:ABX) gained about 1 percent. Shares of First Majestic Silver (NYSE:AG) and Hecla Mining (NYSE:HL) managed small gains of less than 1 percent.
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Disclosure: Long EXK, AG, HL, PHYSRead the original article from Wall St. Cheat Sheet