Gold and silver exchange traded funds fell sharply Wednesday on heavy volume as Federal Reserve Chairman Ben Bernanke testified before Congress. Markets were under pressure with investors disappointed Bernanke didn’t signal further economic stimulus from the Fed.
“People want the punch bowl to be there forever,” said Joe Saluzzi, co-manager of trading at Themis Trading, in a CNBC.com report. “[This selloff’s] because of the lack of what [Bernanke] said. People have had an excuse to buy for the last three months and that excuse has been free money…people are looking for more,” added Saluzzi.
Gold futures dropped by as much as $80 an ounce on Wednesday but held above $1,700, while silver prices shed 6%.
The silver ETF fell below its 200-day simple moving average on elevated trading volume.
Miner stocks followed metal prices lower Wednesday. Market Vectors Gold Miners (NYSEArca: GDX) slipped 3%.
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Full disclosure: Tom Lydon’s clients own GLD and SLV.
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