by Christopher Freeburn | February 18, 2014 4:38 pm
Gold continued its climb in heavy trading on Tuesday after reports showed softer-than-expected factory output in the New York region and fading confidence among homebuilders.
The Federal Reserve Bank of New York’s manufacturing index came in at a reading of 4.48 for February, down from reading of 12.51 last month, and far below the reading of 9 forecast by economists. In a separate report, the National Association of Home Builders monthly sentiment index dropped from a reading of 56 in January to a reading of 46 in February, the largest monthly drop in its history. Weaker economic output could influence the Federal Reserve to slow the tapering of its monthly stimulus, boosting gold’s appeal.
Gold futures for April delivery increased 0.4% to $1,324.40 per ounce on Tuesday, according to CME Group. Gold traded as high as $1,332.40 and as low as $1,312.30. Bullion closed in London at $1,324, according to BullionVault.
Silver futures for March delivery jumped 2.2% to $21.90 per ounce. Tuesday’s high for silver was $21.97, while the low was $21.32.
Metal funds gained on Tuesday.
Mining ETFs were mixed during the day.
Gold stocks mostly rose on Tuesday.
Silver mining shares mostly advanced during the day.
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.
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