Gold and silver opened the week’s trading lower as elections in Europe raised renewed concerns about eurozone sovereign debt and economies. Also, recent data indicate a slowdown in U.S. economic growth.
Spot gold was down 0.15%, bid at $1,639.60 as of 12:54 p.m., having traded as high as $1,642.60 and as low as $1,631.10 an ounce, according to Kitco market data. The London afternoon reference price was set at $1,643.75, unchanged from Friday’s afternoon reference price.
Spot silver was showing a 0.56% loss, bid at $30.17. The morning high as of time of writing was $30.39 and the low was $29.60. Monday’s reference price was set at $29.90 an ounce, also unchanged from Friday’s price fix.
The election of Socialist Party leader Francois Hollande in France and elections in Greece that may threaten its recently negotiated debt structuring put pressure on the euro and the government bonds of nations in the eurozone periphery. The euro hit a three-month low of 1.2955 to the U.S. dollar. German bund futures hit record highs, while prices of Italian and Spanish government debt declined.
A potential shift from austerity to salvaging the EU banking system and spurring credit creation was echoed in Spain, where Prime Minister Mariano Rajoy indicated that his administration will step in and pump public funds into the banking system should conditions warrant.
German factory orders jumped a much higher-than-expected 2.2% in March from February. Year-over-year, they’re down 1.3%. Emerging-market demand fueled the increase. Domestic factory orders rose 1.3%, while export orders increased 3%. The better-than-expected figures led the euro to reverse course and strengthen somewhat against the dollar.
London markets were closed for the May Day Banking holiday.
Gold and silver trusts were starting off the week lower.
The SPDR Gold Trust (NYSE:GLD) was down around 0.2%.
The iShares Gold Trust (NYSE:IAU) was down around 0.16%.
The iShares Silver Trust (NYSE:SLV) was down nearly 0.5%.
Gold and silver mining ETFs were heading lower as well.
The Market Vectors Gold Miners ETF (NYSE:GDX) was showing losses of around 0.6%.
The Market Vectors Junior Gold Miners ETF (NYSE:GDXJ) was down around 2.1%.
The Global X Silver Miners ETF (NYSE:SIL) was down around 1.3%.
Gold mining shares were broadly lower, Agnico-Eagle Mines and Barrick Gold breaking ranks.
Agnico-Eagle Mines (NYSE:AEM) was up some 1.6%.
Barrick Gold (NYSE:ABX) was up around 0.5%.
Eldorado Gold (NYSE:EGO) was down around 2.1%.
Goldcorp (NYSE:GG) was down around 0.9%.
Kinross Gold Corp. USA (NYSE:KGC) was down nearly 0.5%.
Newmont Mining (NYSE:NEM) was around 0.3% lower.
NovaGold Resources (NYSEAMEX:NG) was around 1.4% lower.
Yamana Gold (USA) (NYSE:AUY) was down more than 1.6%.
Silver mining shares were lower to close out a down week.
Coeur d’Alene Mines (NYSE:CDE) was around 2% lower.
Hecla Mining (NYSE:HL) was around 0.75% lower.
Pan American Silver (NASDAQ:PAAS) was showing losses of around 0.15%.
Silver Wheaton (NYSE:SLW) was down around 1.9%.
Silver Standard Resources (NASDAQ:SSRI) was down some 2.2%.
As of this writing, Andrew Burger did not hold a position in any of the aforementioned securities.
