Rising Chinese Inflation Pushes Gold Higher

Gold and silver moved up, but miners were mixed

   

PreciousMetalsRecap Rising Chinese Inflation Pushes Gold HigherGold gained in Tuesday trading after the Chinese government reported that its consumer price index for June rose 2.7% compared to last year.

Economists had been expecting a rise of 2.5%, so the CPI surprise fueled a move into gold. (Higher inflation increases gold’s value as a safe haven asset.) Asian gold demand has been strengthening in recent months.

11103054 gold bullion 200x200 Rising Chinese Inflation Pushes Gold Higher
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Gold futures for August delivery advanced 0.9% to $1,245.90 per ounce on Tuesday, according to CME Group. Gold traded as high as $1,258.70 and as low as $1,232. Gold bullion closed in London at $1,250, according to BullionVault.

Silver futures for August delivery increased 0.5% to $19.13 per ounce. Tuesday’s high for silver was $19.44 while the low was $19.06.

Gold and silver funds rose in Tuesday trading.

  • The SPDR Gold Trust (GLD) gained 0.9%.
  • The iShares Gold Trust (IAU) added 0.8%.
  • The iShares Silver Trust (SLV) also increased 0.8%.

Gold and silver mining ETFs improved during the day.

  • The Market Vectors Gold Miners ETF (GDX) climbed 1.4%.
  • The Market Vectors Junior Gold Miners ETF (GDXJ) advanced 2.7%.
  • The Global X Silver Miners ETF (SIL) rose 1.9%.

Gold mining shares were mixed on Tuesday.

  • Agnico-Eagle Mines (AEM) dipped 0.8%.
  • Barrick Gold (ABX) gained 0.9%.
  • Eldorado Gold (EGO) rose 2.7%.
  • Goldcorp (GG) climbed 2.5%.
  • Kinross Gold (KGC) slipped 0.4%.
  • Newmont Mining (NEM) edged up 0.2%.
  • NovaGold Resources (NG) fell 0.5%.
  • Yamana Gold (AUY) dropped 0.2%.

Silver mining shares were mostly higher during the day.

  • Coeur d’Alene Mines (CDE) sank 0.6%.
  • Hecla Mining (HL) rose 0.4%.
  • Pan American Silver (PAAS) surged 3.5%.
  • Silver Wheaton (SLW) climbed 2.7%.
  • Silver Standard Resources (SSRI) also gained 2.7%.

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/rising-chinese-inflation-pushes-gold-higher/.

©2014 InvestorPlace Media, LLC

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