Gold Surges on Weaker U.S. Dollar
by Christopher Freeburn | July 22, 2013 4:33 pm
[1]A 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.
Gold futures for August delivery jumped 3.3% to $1,336 per ounce Monday, according to CME Group[2]. 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[3].
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[4]) rose 3%.
- The iShares Gold Trust (IAU[5]) advanced 3.1%.
- The iShares Silver Trust (SLV[6]) improved 4.7%.
Gold and silver mining ETFs jumped during the day.
- The Market Vectors Gold Miners ETF (GDX[7]) surged 6%.
- The Market Vectors Junior Gold Miners ETF (GDXJ[8]) soared 8.9%.
- The Global X Silver Miners ETF (SIL[9]) added 6%.
Gold mining shares advanced on Monday.
- Agnico-Eagle Mines (AEM[10]) gained 5.4%.
- Barrick Gold (ABX[11]) rose 6.2%.
- Eldorado Gold (EGO[12]) jumped 9.5%.
- Goldcorp (GG[13]) increased 5.8%.
- Kinross Gold (KGC[14]) climbed 8.6%.
- Newmont Mining (NEM[15]) moved up 5.8%.
- NovaGold Resources (NG[16]) added 7.7%.
- Yamana Gold (AUY[17]) grew 7.1%.
Silver mining shares gained strongly during the day.
- Coeur d’Alene Mines (CDE[18]) increased 7.9%.
- Hecla Mining (HL[19]) rose 4.3%.
- Pan American Silver (PAAS[20]) improved 3.5%.
- Silver Wheaton (SLW[21]) jumped 6.1%.
- Silver Standard Resources (SSRI[22]) surged 10.1%.
As of this writing, Christopher Freeburn did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault[23] contributed to this report.
Endnotes:
- [Image]: https://investorplace.com/wp-content/uploads/2011/10/PreciousMetalsRecap.gif
- CME Group: http://www.cmegroup.com
- BullionVault: http://www.bullionvault.com
- GLD: http://studio-5.financialcontent.com/investplace/quote?Symbol=GLD
- IAU: http://studio-5.financialcontent.com/investplace/quote?Symbol=IAU
- SLV: http://studio-5.financialcontent.com/investplace/quote?Symbol=SLV
- GDX: http://studio-5.financialcontent.com/investplace/quote?Symbol=GDX
- GDXJ: http://studio-5.financialcontent.com/investplace/quote?Symbol=GDXJ
- SIL: http://studio-5.financialcontent.com/investplace/quote?Symbol=SIL
- AEM: http://studio-5.financialcontent.com/investplace/quote?Symbol=AEM
- ABX: http://studio-5.financialcontent.com/investplace/quote?Symbol=ABX
- EGO: http://studio-5.financialcontent.com/investplace/quote?Symbol=EGO
- GG: http://studio-5.financialcontent.com/investplace/quote?Symbol=GG
- KGC: http://studio-5.financialcontent.com/investplace/quote?Symbol=KGC
- NEM: http://studio-5.financialcontent.com/investplace/quote?Symbol=NEM
- NG: http://studio-5.financialcontent.com/investplace/quote?Symbol=NG
- AUY: http://studio-5.financialcontent.com/investplace/quote?Symbol=AUY
- CDE: http://studio-5.financialcontent.com/investplace/quote?Symbol=CDE
- HL: http://studio-5.financialcontent.com/investplace/quote?Symbol=HL
- PAAS: http://studio-5.financialcontent.com/investplace/quote?Symbol=PAAS
- SLW: http://studio-5.financialcontent.com/investplace/quote?Symbol=SLW
- SSRI: http://studio-5.financialcontent.com/investplace/quote?Symbol=SSRI
- BullionVault: http://www.bullionvault.com/
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