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Gold, Silver Lose Ground Amid PMI Reports

Mining shares seeing mixed trading early Wednesday


Gold Silver GLD IAU SLVGold and silver were giving up ground Wednesday morning, as weak PMI data from China and Europe indicated slowing economies in both regions. Existing home sales rose in January for the third time in four months as the median home price fell to its lowest level since November 2001.

Spot gold was down 0.35%, having traded as high as $1,757.80 per ounce and as low as $1,748.40. The London morning fixed reference price came in at $1,754.75, $17.75 per ounce higher than Tuesday’s price fix, according to Kitco market data.

Spot silver was showing a 0.5% loss, bid at $34.19 per ounce with an ask price of $34.29. The morning high as of time of writing was $34.35 and the low was $33.82. Wednesday’s reference price was set at $34.08 in the London a.m., 43 cents an ounce above Tuesday’s reference price fix.

A preliminary estimate of eurozone PMI for February fell to 49.7 from a January reading of 50.4, heightening concerns about the 17 nation league’s ability to avoid recession. Euro zone GDP contracted 0.3% in 4Q 2011 after increasing 0.3% in 3Q. An early estimate of Chinese manufacturing rose in February but remains below the 50 boundary between expansion and contraction. The HSBC Flash China Manufacturing Purchasing Managers’ Index came in at 49.7, a four-month high, according to a Markit Economics press release.

U.S. existing home sales rose 4.3% monthly in January to a seasonally adjusted annual rate of 4.57 million units from a lower revised 4.38 million in December, the National Association of Realtors reported. Existing home sales are up 0.7% over January 2011.

Gold bullion was trading just below $1,760 an ounce in London on Wednesday morning after yesterday’s rally drove prices up 1.3%, BullionVault reported in its daily London Gold Market report.

Gold and silver trusts were moving lower in Wednesday morning trading.

  • The SPDR Gold Trust (NYSE:GLD) was down about 0.17%.
  • The iShares Gold Trust (NYSE:IAU) was showing losses of around 0.2%.
  • The iShares Silver Trust (NYSE:SLV) was down around 0.4%.

Gold mining ETFs were mixed.

  • The Market Vectors Gold Miners ETF (NYSE:GDX) was around 0.4% higher.
  • The Market Vectors Junior Gold Miners ETF (NYSE:GDXJ) was showing losses of nearly 0.3%.
  • The Global X Silver Miners ETF (NYSE:SIL) was up around 0.55%.

Gold mining shares also were mixed.

  • Agnico-Eagle Mines (NYSE:AEM) was showing gains of more than 1.65%.
  • Barrick Gold (NYSE:ABX) was up less than 0.1%.
  • Eldorado Gold (NYSE:EGO) was down between 0.5% and 0.6%.
  • Goldcorp (NYSE:GG) was around 0.1% lower.
  • Kinross Gold (NYSE:KGC) was down nearly 1%.
  • Newmont Mining (NYSE:NEM) was up some 0.6%.
  • NovaGold Resources (AMEX:NG) was unchanged.
  • Yamana Gold (NYSE:AUY) was up around 0.25%.

Silver mining shares were moving higher, with Hecla Mining (NYSE:HL) the exception.

  • Coeur d’Alene Mines (NYSE:CDE) was moving higher, up nearly 0.2%.
  • Hecla Mining was nearly 1% lower.
  • Pan American Silver (NASDAQ:PAAS) was showing gains of 1.4%.
  • Silver Wheaton (NYSE:SLW) was up 1%.
  • Silver Standard Resources (NASDAQ:SSRI) was some 2.3% higher.

As of this writing, Andrew Burger did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault contributed to this report.

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