Gold and Silver Prices Slump as Precious Metal Equities Get Crushed
The gold price experienced a brief rally at the Shanghai open on Friday morning but was then sold lower, reaching its low tick by noon China Standard Time. The subsequent rebound was capped at the 2:15 p.m. afternoon gold fix in London. Trading remained quiet and uneven until a spike occurred when the CPI number was released.
Gold's intraday move in the October contract reached $111.90 an ounce, while silver experienced a similar price path with its high tick set about ten minutes after the 10 a.m. afternoon gold fix in London. Silver's decline after that point was mostly completed by 11:15 a.m. EDT.
The precious metal equities were hit hard, with the HUI closing higher by only 0.78 percent. The gold/silver ratio finished at 67.3 to 1 on Friday compared to 68.0 to 1 on Thursday. The dollar index was also affected, finishing the day up 5 basis points from its close on Thursday.