Gold and Silver Climb Higher after Inflation Data
Both precious metals posted modest gains after the Labor Department reported that U.S. consumer prices increased last month by 0.6 percent. The gain in September matches the previous month’s increase, which was the largest one-month jump since 2009.
The WSJ reports, “As with the prior month, September’s increase was driven largely by energy prices. Gasoline prices rose 7.0 percent, helping push overall energy prices up 4.5 percent.” Economists surveyed by Dow Jones Newswires expected overall prices to climb by 0.5 percent.
By the end of the day, shares of the SPDR Gold Trust (NYSEARCA:GLD) closed 0.64 percent higher, while the iShares Silver Trust (NYSEARCA:SLV) shares gained 0.85 percent. Gold miners (NYSEARCA:GDX) such as Newmont Mining (NYSE:NEM) and Yamana Mining (NYSE:AUY) both jumped more than 2 percent. Silver names such as Endeavour Silver (NYSE:EXK) and First Majestic Silver (NYSE:AG) increased 2.42 percent and 1.78 percent, respectively.
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Disclosure: Long EXK, AG, HL, PHYS