Gold and Silver Struggle As Stocks Make New All-Time Highs
On Tuesday, gold (NYSEARCA:GLD) futures for June delivery, the most active contract, declined $9.80 to close at $1,424.50 per ounce, while silver (NYSEARCA:SLV) futures for July fell 32 cents to finish at $23.38.
Both precious metals declined as stocks rose to make new all-time nominal highs. The US. dollar index, which compares the greenback in a basket against six other fiat currencies, also climbed higher to hit 83.60, its best level of the year.
Adding to the bullish sentiment in the markets, the Congressional Budget Office says the nation’s budget deficit will decline to $642 billion this year, compared to a $1.1 trillion deficit last year. Next year’s deficit is expected to shrink to $560 billion.
By the end of the day, the SPDR Gold Trust (NYSEARCA:GLD) declined 0.45 percent, while the iShares Silver Trust (NYSEARCA:SLV) dropped 1.14 percent. However, shares of Barrick Gold (NYSE:ABX) and Yamana Gold (NYSE:AUY) both managed to close slightly higher. Shares of Hecla Mining (NYSE:HL) finished flat.
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Disclosure: Long EXK, AG, HL, PHYS