Gold Slumped As ECB Denies an extended bond buying program (GLD, GDX, SLV, IAU, ABX, IAG, KGN, GSS, PAAS, SLW, AXU, COPX, JJC, FCX, SCCO)

Published on Thursday, 08 December 2011 12:31 Written by Paul Oldrini

  New York, December 8th (TradersHuddle.com) – Gold prices edged sharply lower on Thursday European Central Bank President Mario Draghi denied about extending bond buying program. Other metals including copper also were under heavy selling pressure.

Gold for February delivery declined $30.10, or 1.75%, to $1,714.70 an ounce on the Comex division of the New York Mercantile Exchange, after hitting session high of $ $1,760.50.

U.S. Stocks futures and broader commodities turned negative as Draghi spoke in a press conference. The ECB slash its key lending rate by a quarter point to 1%, in line with expectations.

In the ECB press conference, Draghi commented the European Union treaty prohibits “monetary financing” in response to a question about the extension of its bond-buying program.

January platinum futures slid $17.95 or 2.62% to $667.50 an ounce, March palladium futures slumped $16.55, or 2.4%, to $668.90 an ounce. Copper slid 1.66% to $$349.70/ lb.

Now investors are eagerly waiting for a meeting this Friday in Brussels to discuss proposals for more rigorous fiscal regulations. 

Elsewhere, the U.S. dollar index soared 0.70% to 78.93 in North American trade as the euro slid against the dollar.

SPDR Gold Trust (ETF)  (NYSE:GLD) lost 1.67% to $166.52.  Market Vectors Etf Trust  (NYSE:GDX) fell 2.73% to $57.35, iShares Silver Trust (ETF)(NYSE:SLV) lost 2.37% and iShares Gold Trust(ETF)(NYSE:IAU) declined 1.65%.

Barrick Gold Corporation (USA)  (NYSE:ABX) slumped 3.20%, IAMGOLD Corporation (USA)(NYSE:IAG) fell 3.18% and Keegan Resources Inc.(AMEX:KGN)slumped 6.31%. Golden Star Resources Ltd. (USA)(AMEX:GSS)also fell over 3.50%.

Pan American Silver Corp. (USA)(NASDAQ:PAAS) lost 0.86 %, Silver Wheaton Corp. (USA)(NYSE:SLW) lost 1.91% to $32.82. Alexco Resource Corp. (USA)(AMEX:AXU) declined about 1%.

Global X Copper Miners ETF  (NYSE:COPX) is trading lower by 2.68% after soaring over 20% in the past one week, iPath Dow Jones-UBS Copper Subindex Total Return ETN  (NYSE:JJC) fell over 2%.

Freeport-McMoRan Copper & Gold Inc.  (NYSE:FCX) is trading lower by 3.54% to $8.99 and Southern Copper Corporation (USA)(NYSE:SCCO) is falling over 3%.