Gold Falls on Positive U.S. Factory Report

Silver also faded, but mining stocks mostly gained

   

Gold Falls on Positive U.S. Factory Report

PreciousMetalsRecap Gold Falls on Positive U.S. Factory ReportGold 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.

11103054 gold bullion 200x200 Gold Falls on Positive U.S. Factory Report
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, http://investorplace.com/2014/01/gold-falls-positive-u-s-factory-report/.

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.