Gold and Silver Hold Steady After Economic Data
Both precious metals managed to squeeze out a modest gain, despite the U.S. dollar index climbing higher after economic data. The Institute for Supply Management’s non-manufacturing index climbed to 55.1, easily beating estimates around 53. It was the largest jump in the index in six months. A reading above 50 indicates expansion in the sector. Furthermore, private businesses added 162,000 jobs last month, higher than the 153,000 expected by economists, according to Automatic Data Processing (NASDAQ:ADP).
“It looks more like things are heading in the right direction. It is this new reality, we don’t have robust growth, we just have very moderate growth,” said William Larkin, fixed income portfolio manager at Cabot Money Management, according to Reuters.
In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) traded flat, while the iShares Silver Trust (NYSEARCA:SLV) edged slightly lower. Gold miners (NYSEARCA:GDX) such as Yamana Gold (NYSE:AUY) and Barrick Gold (NYSE:ABX) both declined more than 1 percent. Silver names such as Coeur d’Alene Mines (NYSE:CDE) and Endeavour Silver (NYSE:EXK) both fell more than 2 percent.
Investor Insight: Fundamental and Technical Indicators Glitter for Gold
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Disclosure: Long EXK, AG, HL, PHYS