Gold Sinks on Weaker Chinese Factory Data
by Christopher Freeburn | February 20, 2014 4:30 pm
[1]Gold lost ground for a second straight session on Thursday after a report suggested slowing factory output in China.
The HSBC China Purchasing Managers’ Index (PMI) slid to a reading of 48.3 in February, down from 49.5 in January. A reading lower than 50 suggests contracting manufacturing activity. China is a major buyer of physical gold. Lower economic growth could cool Chinese appetite for the metal.
Gold futures for April delivery moved down 0.3% to $1,316.90 per ounce on Thursday, according to CME Group[2]. Gold traded as high as $1,318.70 and as low as $1,307.10. Bullion closed in London at $1,326, according to BullionVault[3].
Silver futures for March delivery dropped o.8% to $21.68 per ounce. Thursday’s high for silver was $21.79, while the low was $21.40.
Metal funds gained on Thursday.
- The SPDR Gold Shares (GLD[4]) added 1%.
- The iShares Gold Trust (IAU[5]) rose 1%.
- The iShares Silver Trust (SLV[6]) climbed 1.8%.
Mining ETFs advanced during the day.
- The Market Vectors Gold Miners ETF (GDX[7]) gained 4.1%.
- The Market Vectors Junior Gold Miners ETF (GDXJ[8]) surged 6.4%.
- The Global X Silver Miners ETF (SIL[9]) increased 3.5%.
Gold stocks moved sharply higher on Thursday.
- Agnico-Eagle Mines (AEM[10]) rose 5.8%.
- Barrick Gold (ABX[11]) jumped 6.1%.
- Eldorado Gold (EGO[12]) climbed 3.6%.
- Goldcorp (GG[13]) added 3.8%.
- Kinross Gold (KGC[14]) increased 5.4%.
- Newmont Mining (NEM[15]) moved up 2.9%.
- NovaGold Resources (NG[16]) advanced 3.9%.
- Yamana Gold (AUY[17]) gained 2.8%.
Silver mining shares improved during the day.
- Coeur d’Alene Mines (CDE[18]) rose 3.5%.
- Hecla Mining (HL[19]) added 4.4%.
- Pan American Silver (PAAS[20]) surged 6.3%.
- Silver Wheaton (SLW[21]) gained 4.1%.
- Silver Standard Resources (SSRI[22]) climbed 5.7%.
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.
Endnotes:
- [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/
Source URL: https://investorplace.com/2014/02/gold-sinks-weaker-chinese-factory-data/