Gold, Silver Lower on Mixed News Reports

by Andrew Burger | June 26, 2012 1:21 pm

Gold Silver GLD IAU SLV[1]Gold and silver were headed lower Tuesday morning on mixed U.S. economic data and a weak Spanish Treasury auction, as markets await an EU summit and a Supreme Court ruling on “Obamacare” later this week.

Spot gold was lower, down 0.83%, bid at $1,572.20 an ounce at 12:38 p.m. The morning high reached $1,583.30, with the low at 1,566.90, according to Kitco market data[2]. The London afternoon reference price was fixed at $1,576, $6 an ounce higher than Monday’s price fixing.

Spot silver was down 2%, bid at $26.99. The day’s high thus far was $27.49 and the low $26.74. The London a.m. reference price was fixed at $27.44, 72 cents an ounce higher than Monday’s reference price.

Sales of single-family homes rose for the third consecutive month[3] in April, according to the S&P/Case-Shiller composite index of 20 metropolitan areas, which rose a seasonally adjusted 0.7%, beating consensus expectations of a 0.4% gain.

Consumer confidence fell[4] a greater-than-expected 2.4 points to 62.0 in June, according to the Conference Board’s index, the fourth consecutive monthly decline. May’s reading was revised down from 64.9. The Board’s Expectations Index for June also declined, dropping 0.9 points to 63.5.

Spain had to pay nearly 2% more[5] than last month to auction off three-month and six-month Treasury bills. The bid-to-cover ratio also was lower. The euro resumed its decline following the results.

Gold bullion prices hovered just above the $1,580-an-ounce level, around 0.6% higher than last week’s closing price in London morning trading Tuesday, BullionVault reported[6].

“After last week’s bearish price action, it is hard to get excited about a sustained rally [for gold],” BullionVault quoted Scotia Mocatta technical analysts’ latest research note. “In our opinion, gold has resumed its downtrend…we will retain this negative forecast while the gold price trades below the current June high at $1,641,” added Commerzbank senior technical analyst Axel Rudolph.

Gold and silver trusts were headed lower Tuesday morning in U.S. stock exchange trading.

Gold and silver mining ETFs were moving lower as well.

Gold mining shares were showing sharp morning losses.

Silver mining shares were down across the board for the second morning straight.

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.

Endnotes:

  1. [Image]: https://investorplace.com/wp-content/uploads/2011/10/PreciousMetalsRecap.gif
  2. Kitco market data: http://www.kitco.com/market/
  3. rose for the third consecutive month: http://www.cnbc.com/id/47960440
  4. Consumer confidence fell: http://www.forexpros.com/news/economic-indicators/u.s.-cb-consumer-confidence-falls-more-than-expected-in-june-235260
  5. pay nearly 2% more: http://www.forexpros.com/analysis/euro-stumbles-after-poor-spanish-auction-127711
  6. BullionVault reported: http://goldnews.bullionvault.com/buy-gold-062620121
  7. GLD: http://studio-5.financialcontent.com/investplace/quote?Symbol=GLD
  8. IAU: http://studio-5.financialcontent.com/investplace/quote?Symbol=IAU
  9. SLV: http://studio-5.financialcontent.com/investplace/quote?Symbol=SLV
  10. GDX: http://studio-5.financialcontent.com/investplace/quote?Symbol=GDX
  11. GDXJ: http://studio-5.financialcontent.com/investplace/quote?Symbol=GDXJ
  12. SIL: http://studio-5.financialcontent.com/investplace/quote?Symbol=SIL
  13. AEM: http://studio-5.financialcontent.com/investplace/quote?Symbol=AEM
  14. ABX: http://studio-5.financialcontent.com/investplace/quote?Symbol=ABX
  15. EGO: http://studio-5.financialcontent.com/investplace/quote?Symbol=EGO
  16. GG: http://studio-5.financialcontent.com/investplace/quote?Symbol=GG
  17. KGC: http://studio-5.financialcontent.com/investplace/quote?Symbol=KGC
  18. NEM: http://studio-5.financialcontent.com/investplace/quote?Symbol=NEM
  19. NG: http://studio-5.financialcontent.com/investplace/quote?Symbol=NG
  20. AUY: http://studio-5.financialcontent.com/investplace/quote?Symbol=AUY
  21. CDE: http://studio-5.financialcontent.com/investplace/quote?Symbol=CDE
  22. HL: http://studio-5.financialcontent.com/investplace/quote?Symbol=HL
  23. PAAS: http://studio-5.financialcontent.com/investplace/quote?Symbol=PAAS
  24. SLW: http://studio-5.financialcontent.com/investplace/quote?Symbol=SLW
  25. SSRI: http://studio-5.financialcontent.com/investplace/quote?Symbol=SSRI

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