Higher-than-expected inflation in China and renewed speculation that the Federal Reserve might implement monetary easing following a weak March employment report were buoying gold and silver Monday morning.
Spot gold was up 0.8% as of 10:48 a.m., having traded as high as $1,649.90 and as low as $1,640 an ounce, according to Kitco market data. The London afternoon reference price was set at $1,631, unchanged from last Thursday’s afternoon reference price.
Spot silver was showing a 0.16% gain, bid at $31.76, with an ask price of $31.86. The morning high as of time of writing was $32.18 and the low was $31.68. Monday’s reference price was set at $31.27 in the London a.m., also unchanged from last Thursday’s price fix.
March’s employment report was a big disappointment. Although there were bright spots — gains in manufacturing, food services and drinking places, and health care, among others — declines in retail employment overwhelmed them, the Bureau of Labor Statistics reported.
At 120,000, total nonfarm payroll employment gains were much smaller than the average 246,000 per month over the past three months and much smaller than forecast. At 8.2%, the headline unemployment rate was little changed month-to-month.
Inflation in China rose a higher-than-expected 3.6% year-over-year in March, up from February’s 3.2% but still below the official government target of 4%. March’s increase may temper the Chinese government’s inclination to ease monetary policy to further stimulate the economy, according to China economy watchers.
Gold prices rose in overnight Asia-Pacific trading, while London’s wholesale gold markets reopen tomorrow.
Gold trusts were higher, while the iShares Silver Trust was lower on U.S. stock exchanges Monday morning.
The SPDR Gold Trust (NYSE:GLD) was up around 0.9%.
The iShares Gold Trust (NYSE:IAU) was up nearly 0.9%.
The iShares Silver Trust (NYSE:SLV) was down around 0.2%.
Gold mining ETFs were higher, while the Global X Silver Miners ETF was fluctuating between smallish gains and losses.
The Market Vectors Gold Miners ETF (NYSE:GDX) was showing gains of around 1.55%.
The Market Vectors Junior Gold Miners ETF (NYSE:GDXJ) was showing gains of around 1.6%.
The Global X Silver Miners ETF (NYSE:SIL) was moving up and down around the unchanged mark.
Gold mining shares were broadly higher, NovaGold Resources the exception.
Agnico-Eagle Mines (NYSE:AEM) was showing gains of nearly 1.1%.
Barrick Gold (NYSE:ABX) was up around 1.6%.
Eldorado Gold (NYSE:EGO) was up some 0.3%.
Goldcorp (NYSE:GG) was around 1.25% higher.
Kinross Gold Corp. USA (NYSE:KGC) was up around 1.2%.
Newmont Mining (NYSE:NEM) was up more than 1.3%.
NovaGold Resources (NYSEAMEX:NG) was down, some 0.9% lower.
Yamana Gold (USA) (NYSE:AUY) was up more than 2.2%.
Silver mining shares were heading south as well to close out the holiday-shortened week.
Coeur d’Alene Mines (NYSE:CDE) was showing gains of more than 0.5%.
Hecla Mining (NYSE:HL) was down more than 0.9%.
Pan American Silver (NASDAQ:PAAS) was showing gains of around 0.7%.
Silver Wheaton (NYSE:SLW) was up around 0.65%.
Silver Standard Resources (NASDAQ:SSRI) was up around 1.1%.
