Gold and Silver, Strong Start to Q2

On Monday, gold (NYSEARCA:GLD) futures for June delivery increased $7.80 to settle at $1,679.70 per ounce, while silver (NYSEARCA:SLV) futures jumped 61 cents to close at $33.10.

Both precious metals climbed higher as the pace of growth in U.S. manufacturing increased last month. The Institute for Supply Management said its index of national factory activity rose to 53.4, compared to 52.4 in February. Economists were expecting a reading of about 53.0.

Don’t Miss: Emerging Markets Look to Drop BRICS on U.S. Dollar

U.S. construction spending decreased 1.1 percent to an annual rate of $808.86 billion, the lowest level since October, according to the Commerce Department. Exports also decreased from 54.9 to 54.5.

In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) gained .60 percent, while the iShares Silver Trust (NYSEARCA:SLV) popped 2.3 percent. Gold miners (NYSEARCA:GDX) such as Goldcorp Inc. (NYSE:GG) and Yamana Gold (NYSE:AUY) both increased more than 2 percent. Silver miners (NYSEARCA:SIL) such as First Majestic (NYSE:AG) and Endeavour Silver (NYSE:EXK) jumped 3.2 percent and 3.8 percent, respectively.

Investor Insight: Should Investors Activate Gold and Silver Airbags?

If you would like to receive professional analysis on equity miners and other precious metal investmentswe invite you to try our premium service free for 14 days.

Disclosure: Long EXK, AG, HL, PHYS


To contact the reporter on this story: Eric McWhinnie at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com