Gold Sinks on Weaker Chinese Factory Data

by Christopher Freeburn | February 20, 2014 4:30 pm

PreciousMetalsRecap Gold Sinks on Weaker Chinese Factory Data[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.

Mining ETFs advanced during the day.

Gold stocks moved sharply higher on Thursday.

Silver mining shares improved during the day.

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.

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