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Gold Falls on Positive U.S. Factory Report

Silver also faded, but mining stocks mostly gained


Gold Silver GLD IAU SLVGold sank in Wednesday trading as a key survey indicated better-than-expected U.S. manufacturing.

The business condition index of the Federal Reserve Bank of New York’s Empire State Manufacturing Survey jumped to a reading of 12.51 in January. That was up sharply from a reading of 2.22 last month. It also surprised economists who had forecast a reading of 3. The U.S. dollar climbed against other currencies, further weakening gold’s appeal to investors.

All That Glitters Is Not Goldcorp – GG
All That Glitters Is Not Goldcorp – GG

Gold futures for February delivery fell 0.6% to $1,238.30 per ounce on Wednesday, according to CME Group. Gold traded as high as $1,244.60 and as low as $1,233.60. Bullion closed in London at $1,241, according to BullionVault.

Silver futures for March delivery slid 0.7%, to $20.13 per ounce. Wednesday’s high for silver was $20.27, while the low was $19.91.

Metal funds faded on Wednesday.

  • The SPDR Gold Shares (GLD) fell 0.2%.
  • The iShares Gold Trust (IAU) dipped 0.1%.
  • The iShares Silver Trust (SLV) moved down 0.1%.

Mining ETFs advanced during the day.

  • The Market Vectors Gold Miners ETF (GDX) climbed 1.3%.
  • The Market Vectors Junior Gold Miners ETF (GDXJ) rose 1%.
  • The Global X Silver Miners ETF (SIL) gained 0.8%.

Gold stocks mostly climbed on Wednesday.

  • Agnico-Eagle Mines (AEM) rose 3.4%.
  • Barrick Gold (ABX) added 1.4%.
  • Eldorado Gold (EGO) increased 1.7%.
  • Goldcorp (GG) slid 0.3%.
  • Kinross Gold (KGC) gained 0.9%.
  • Newmont Mining (NEM) moved up 0.7%.
  • NovaGold Resources (NG) gained 3.3%.
  • Yamana Gold (AUY) dropped 1.8%.

Silver mining shares improved during the day.

  • Coeur d’Alene Mines (CDE) added 2.5%.
  • Hecla Mining (HL) rose 1.9%.
  • Pan American Silver (PAAS) gained 2.7%.
  • Silver Wheaton (SLW) climbed 1.4%.
  • Silver Standard Resources (SSRI) advanced 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,

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