Positive Economic News Sends U.S. Dollar Up, Gold Down

Miners broadly decline, led by Pan American Silver and Kinross

   

Positive Economic News Sends U.S. Dollar Up, Gold Down

PreciousMetalsRecap Positive Economic News Sends U.S. Dollar Up, Gold DownGold sank modestly on Tuesday as the U.S. dollar surged against other currencies. The dollar was boosted by favorable economic reports, including the highest U.S. consumer confidence level in five years and the strongest year-over-year rise in home prices in seven years.

The better-than-expected economic news signaled to investors that the Federal Reserve could curtail its stimulus efforts earlier than previously thought. That sent the Dow Jones Industrial Average to another record high … and also sent gold lower.

11103054 gold bullion 200x200 Positive Economic News Sends U.S. Dollar Up, Gold Down
Gold Just Isn’t Worth the Risk

Gold futures for June delivery slid 0.6% to $1,378.90 per ounce on Tuesday, according to CME Group. Gold traded as high as $1,401 and as low as $1,372.10. Gold bullion closed in London at $1,383, according to BullionVault.

Silver futures for June delivery fell 1.3% to $22.18 per ounce. Tuesday’s high for silver was $22.68 while the low was $22.15.

Gold and silver funds declined in Tuesday trading.

  • The SPDR Gold Trust (GLD) dipped 0.2%.
  • The iShares Gold Trust (IAU) sank 0.3%.
  • The iShares Silver Trust (SLV) also dropped 0.3%.

Gold and silver mining ETFs were mostly lower during the day.

  • The Market Vectors Gold Miners ETF (GDX) fell 1%.
  • The Market Vectors Junior Gold Miners ETF (GDXJ) slumped 1.1%.
  • The Global X Silver Miners ETF (SIL) rose 0.3%.

Gold mining shares were mixed on Tuesday.

  • Agnico-Eagle Mines (AEM) slipped 0.7%.
  • Barrick Gold (ABX) dipped 0.2%.
  • Eldorado Gold (EGO) fell 1.6%.
  • Goldcorp (GG) declined 1.1%.
  • Kinross Gold (KGC) sank 2.8%.
  • Newmont Mining (NEM) rose 0.3%.
  • NovaGold Resources (NG) gained 0.8%.
  • Yamana Gold (AUY) was flat.

Silver mining shares were also mixed during the day.

  • Coeur d’Alene Mines (CDE) declined 0.3%.
  • Hecla Mining (HL) climbed 1.2%.
  • Pan American Silver (PAAS) dropped 2.3%.
  • Silver Wheaton (SLW) fell 1%.
  • Silver Standard Resources (SSRI) gained 0.3%.

As of this writing, Christopher Freeburn did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault contributed to this report.


Article printed from InvestorPlace Media, http://investorplace.com/2013/05/positive-economic-news-sends-u-s-dollar-up-gold-down/.

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