Gold Sinks on Higher U.S. Consumer Spending

Gold Silver GLD IAU SLVMore positive U.S. economic news sent gold lower in Monday trading, pushing the metal back below $1,200 per ounce.

The Commerce Department reported that consumer spending climbed a seasonally-adjusted 0.5% in November, matching economists’ predictions. That marked the highest gain in consumer spending since June.

Gold Outlook 2014: Look Out Below!
Gold Outlook 2014: Look Out Below!

Gold futures for February delivery fell 0.6% to $1,197 per ounce on Monday, according to CME Group. Gold traded as high as $1,205.60 and as low as $1,191.80. Bullion closed in London at $1,197, according to BullionVault.

Silver futures for March delivery slipped 0.2%, to $19.41 per ounce. Monday’s high for silver was $19.52, while the low was $19.27.

Metal funds were mixed on Monday.

  • The SPDR Gold Shares (GLD) fell 0.3%.
  • The iShares Gold Trust (IAU) dipped 0.2%.
  • The iShares Silver Trust (SLV) gained 0.6%.

Mining ETFs declined during the day.

  • The Market Vectors Gold Miners ETF (GDX) sank 0.7%.
  • The Market Vectors Junior Gold Miners ETF (GDXJ) dropped 1.5%.
  • The Global X Silver Miners ETF (SIL) slid 0.6%.

Gold stocks were mixed on Monday.

  • Agnico-Eagle Mines (AEM) added 0.9%.
  • Barrick Gold (ABX) moved up 0.5%.
  • Eldorado Gold (EGO) fell 0.4%.
  • Goldcorp (GG) edged up 0.1%.
  • Kinross Gold (KGC) rose 0.5%.
  • Newmont Mining (NEM) fell 0.7%.
  • NovaGold Resources (NG) slid 0.9%.
  • Yamana Gold (AUY) gained 0.1%.

Silver mining shares mostly climbed during the day.

  • Coeur d’Alene Mines (CDE) rose 0.6.
  • Hecla Mining (HL) increased 1.1%.
  • Pan American Silver (PAAS) climbed 1.2%.
  • Silver Wheaton (SLW) fell 0.4%.
  • Silver Standard Resources (SSRI) sank 0.6%.

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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