Rising Chinese Inflation Pushes Gold Higher
by Christopher Freeburn | July 9, 2013 4:35 pm
[1]Gold 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.
Gold futures for August delivery advanced 0.9% to $1,245.90 per ounce on Tuesday, according to CME Group[2]. 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[3].
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[4]) gained 0.9%.
- The iShares Gold Trust (IAU[5]) added 0.8%.
- The iShares Silver Trust (SLV[6]) also increased 0.8%.
Gold and silver mining ETFs improved during the day.
- The Market Vectors Gold Miners ETF (GDX[7]) climbed 1.4%.
- The Market Vectors Junior Gold Miners ETF (GDXJ[8]) advanced 2.7%.
- The Global X Silver Miners ETF (SIL[9]) rose 1.9%.
Gold mining shares were mixed on Tuesday.
- Agnico-Eagle Mines (AEM[10]) dipped 0.8%.
- Barrick Gold (ABX[11]) gained 0.9%.
- Eldorado Gold (EGO[12]) rose 2.7%.
- Goldcorp (GG[13]) climbed 2.5%.
- Kinross Gold (KGC[14]) slipped 0.4%.
- Newmont Mining (NEM[15]) edged up 0.2%.
- NovaGold Resources (NG[16]) fell 0.5%.
- Yamana Gold (AUY[17]) dropped 0.2%.
Silver mining shares were mostly higher during the day.
- Coeur d’Alene Mines (CDE[18]) sank 0.6%.
- Hecla Mining (HL[19]) rose 0.4%.
- Pan American Silver (PAAS[20]) surged 3.5%.
- Silver Wheaton (SLW[21]) climbed 2.7%.
- Silver Standard Resources (SSRI[22]) 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[23] contributed to this report.
- [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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