Gold Surges on Weaker U.S. Dollar

The metal closed over $1,300 an ounce

   

Gold Surges on Weaker U.S. Dollar

PreciousMetalsRecap Gold Surges on Weaker U.S. DollarA weaker-than-expected report on June home sales pushed the U.S. dollar down in Monday trading, boosting gold to its highest single-day gain in more than a year.

According to the National Association of Realtors, last month the seasonally adjusted sales pace for homes fell 1.2% to 5.08 million units. Economists had expected the annualized sales rate to rise to 5.28 million units.

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Gold futures for August delivery jumped 3.3% to $1,336 per ounce Monday, according to CME Group. Gold traded as high as $1,339.10 and as low as $1,295.40. Gold bullion closed in London at $1,336, according to BullionVault.

Silver futures for August delivery soared 5.4% to $20.50 per ounce. Monday’s high for silver was $20.53, while the low was $19.76.

Gold and silver funds climbed in Monday trading.

  • The SPDR Gold Trust (GLD) rose 3%.
  • The iShares Gold Trust (IAU) advanced 3.1%.
  • The iShares Silver Trust (SLV) improved 4.7%.

Gold and silver mining ETFs jumped during the day.

  • The Market Vectors Gold Miners ETF (GDX) surged 6%.
  • The Market Vectors Junior Gold Miners ETF (GDXJ) soared 8.9%.
  • The Global X Silver Miners ETF (SIL) added 6%.

Gold mining shares advanced on Monday.

  • Agnico-Eagle Mines (AEM) gained 5.4%.
  • Barrick Gold (ABX) rose 6.2%.
  • Eldorado Gold (EGO) jumped 9.5%.
  • Goldcorp (GG) increased 5.8%.
  • Kinross Gold (KGC) climbed 8.6%.
  • Newmont Mining (NEM) moved up 5.8%.
  • NovaGold Resources (NG) added 7.7%.
  • Yamana Gold (AUY) grew 7.1%.

Silver mining shares gained strongly during the day.

  • Coeur d’Alene Mines (CDE) increased 7.9%.
  • Hecla Mining (HL) rose 4.3%.
  • Pan American Silver (PAAS) improved 3.5%.
  • Silver Wheaton (SLW) jumped 6.1%.
  • Silver Standard Resources (SSRI) surged 10.1%.

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/2013/07/gold-surges-on-weaker-u-s-dollar/.

©2014 InvestorPlace Media, LLC

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