Both precious metals traded lower along with equities as Prime Minister Mariano Rajoy said a bailout request for Spain was not imminent. Speculation has been building for the nation to request the eurozone’s fourth official bailout, but markets will have to wait a bit longer.
“Spain being rescued would be good for risk assets and ultimately global growth, but while the benefits are largely priced in, we’re still getting conflicting signals that understandably have investors apprehensive,” explains Brian Barish, president of Cambiar Investors LLC, according to Reuters. “Until we get some kind of clarity, we should expect a lot of volatility and difficulty holding onto gains.”
In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) edged 0.25 percent lower, while the iShares Silver Trust (NYSEARCA:SLV) fell 0.60 percent. Gold miners (NYSEARCA:GDX) such as Barrick Gold (NYSE:ABX) and Yamana Gold (NYSE:AUY) both dropped more than 1 percent. Meanwhile, silver investments such as Silver Wheaton (NYSE:SLW) and Endeavour Silver (NYSE:EXK) declined 1.3 percent and 2.5 percent, respectively.
Investor Insight: Gold & Silver: Protection Against the Fed’s Punch Bowl
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Disclosure: Long EXK, AG, HL, PHYS