Gold and silver were lower to start the week’s trading as markets focused on the details of EU emergency funding package for Spanish banks and the coming weekend’s elections in Greece.
Spot gold was down 0.66% lower as of 11:29 a.m., bid at $1,584.10 an ounce. The morning high reached $1,597.40, and the low $1,581, according to Kitco market data. The London afternoon reference price was fixed at $1,584, $7.50 an ounce higher than Friday’s fixed price.
Spot silver was showing a 0. 6% loss, bid at $28.36 an ounce. The morning high as of time of writing was $28.88, with the low reaching $28.23. Monday’s reference price fix of $28.63 is 54 cents an ounce below Friday’s reference price.
A weekend agreement by eurozone finance ministers that will see as much as $125 billion shuttled to Spain to help recapitalize bad-debt-laden banks was boosting European shares. The euro was also gaining ground against the dollar, approaching a three-week high of 1.263 early morning London time. Greeks go back to the polls on Sunday to try to elect new government leadership, which may temper market optimism regarding the outcome of Europe’s debt crisis.
Growth in Chinese bank loans grew faster than expected in May as the government has been approving more infrastructure projects and eased monetary policy, including a surprise interest rate cut last week. Retail sales fell short of expectations, while industrial output rose 9.6% year-over-year, below expectations. Consumer price inflation (CPI) dropped to 3%, while producer prices (PPI) fell 1.4% year-over-year, the third consecutive decline.
China’s trade figures came in strong as imports rose 12.7%, more than twice the expected rate, and exports 15.3%. Crude oil imports hit a record-high 6 million barrels per day, while copper imports surged, driving the price of three-month copper futures to their biggest gain in two months.
Gold bullion dropped back below $1,600 an ounce in London trading Monday morning, BullionVault reported. “Gold seems to be primarily tracking one trend, namely the trend in the US Dollar,” BullionVault quoted a Cit research note. “If an event in Europe causes the US dollar to weaken, gold is likely to rise. If it causes the US dollar to strengthen, gold will likely fall.”
Gold and silver trusts were headed lower in U.S. stock exchange trading.
- The SPDR Gold Trust (NYSE:GLD) was showing losses of around 0.45%.
- The iShares Gold Trust (NYSE:IAU) was down around 0.5%.
- The iShares Silver Trust (NYSE:SLV) was down around 0.6%.
Gold- and silver-mining ETFs were also down Monday morning thus far.
- The Market Vectors Gold Miners ETF (NYSE:GDX) was down around 1%.
- The Market Vectors Junior Gold Miners ETF (NYSE:GDXJ) was around 1% lower.
- The Global X Silver Miners ETF (NYSE:SIL) was down around 2.1%.
Gold-mining shares were showing losses across the board.
- Agnico-Eagle Mines (NYSE:AEM) was down more than 1.8%.
- Barrick Gold (NYSE:ABX) was around 1.2% lower.
- Eldorado Gold (NYSE:EGO) was down around 0.1%.
- Goldcorp (NYSE:GG) was around 1.6% higher.
- Kinross Gold Corp. USA (NYSE:KGC) was down some 0.6%.
- Newmont Mining (NYSE:NEM) was showing losses of around 1.5%.
- NovaGold Resources (NYSEAMEX:NG) was down around 0.3%.
- Yamana Gold (USA) (NYSE:AUY) was around 0.8% lower.
Silver-mining shares were in negative territory as well, Hecla Mining the exception.
- Coeur d’Alene Mines (NYSE:CDE) was down around 1.2%.
- Hecla Mining (NYSE:HL) was up around 0.4.%.
- Pan American Silver (NASDAQ:PAAS) was around 1.5% lower.
- Silver Wheaton (NYSE:SLW) was around 1.9% lower.
- Silver Standard Resources (NASDAQ:SSRI) was down around 1.8%.
As of this writing, Andrew Burger did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault contributed to this report.