Gold Climbs on Weak U.S. Manufacturing Data

Gold Silver GLD IAU SLVGold rose in Monday trading, closing back above $1,400 an ounce, after a report showed that the U.S. manufacturing sector contracted last month. The Institute for Supply Management’s manufacturing index dropped from 50.7% in April, to 49% last month. The news sent the U.S. dollar down against other currencies. It also signaled to investors that Federal Reserve economic stimulus efforts were likely to continue, boosting gold’s appeal.

Gold futures for July delivery jumped 1.4% to $1,411.80 per ounce on Monday, according to CME Group. Gold traded as high as $1,416.10 and as low as $1,388.80. Gold bullion closed in London at $1,411, according to BullionVault.

Silver futures for July delivery gained 2.1% to $22.72 per ounce. Monday’s high for silver was $22.92 while the low was $22.18.

Gold and silver funds advanced in Monday trading.

  • The SPDR Gold Trust (GLD) rose 1.9%.
  • The iShares Gold Trust (IAU) also added 1.9%.
  • The iShares Silver Trust (SLV) climbed 2.5%.

Gold and silver mining ETFs moved higher during the day.

  • The Market Vectors Gold Miners ETF (GDX) gained 2.9%.
  • The Market Vectors Junior Gold Miners ETF (GDXJ) surged 4.4%.
  • The Global X Silver Miners ETF (SIL) advanced 2.9%.

Gold mining shares improved on Monday.

  • Agnico-Eagle Mines (AEM) rose 2.9%.
  • Barrick Gold (ABX) added 1.2%.
  • Eldorado Gold (EGO) climbed 3%.
  • Goldcorp (GG) gained 2.7%.
  • Kinross Gold (KGC) added 2.8%.
  • Newmont Mining (NEM) moved up 1.7%.
  • NovaGold Resources (NG) advanced 2.8%.
  • Yamana Gold (AUY) surged 3.6%.

Silver mining shares moved up sharply during the day.

  • Coeur d’Alene Mines (CDE) jumped 4.7%.
  • Hecla Mining (HL) increased 2.9%.
  • Pan American Silver (PAAS) rose 4.4%.
  • Silver Wheaton (SLW) gained 2.3%.
  • Silver Standard Resources (SSRI) rose 1.9%.

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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