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Gold Sinks on Weaker Chinese Factory Data

Silver also slipped, but miners posted sharp gains


Gold Silver GLD IAU SLVGold 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.

Will Gold Become Worthless?
Will Gold Become Worthless?

Gold futures for April delivery moved down 0.3% to $1,316.90 per ounce on Thursday, according to CME Group. 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.

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.

  • The SPDR Gold Shares (GLD) added 1%.
  • The iShares Gold Trust (IAU) rose 1%.
  • The iShares Silver Trust (SLV) climbed 1.8%.

Mining ETFs advanced during the day.

  • The Market Vectors Gold Miners ETF (GDX) gained 4.1%.
  • The Market Vectors Junior Gold Miners ETF (GDXJ) surged 6.4%.
  • The Global X Silver Miners ETF (SIL) increased 3.5%.

Gold stocks moved sharply higher on Thursday.

  • Agnico-Eagle Mines (AEM) rose 5.8%.
  • Barrick Gold (ABX) jumped 6.1%.
  • Eldorado Gold (EGO) climbed 3.6%.
  • Goldcorp (GG) added 3.8%.
  • Kinross Gold (KGC) increased 5.4%.
  • Newmont Mining (NEM) moved up 2.9%.
  • NovaGold Resources (NG) advanced 3.9%.
  • Yamana Gold (AUY) gained 2.8%.

Silver mining shares improved during the day.

  • Coeur d’Alene Mines (CDE) rose 3.5%.
  • Hecla Mining (HL) added 4.4%.
  • Pan American Silver (PAAS) surged 6.3%.
  • Silver Wheaton (SLW) gained 4.1%.
  • Silver Standard Resources (SSRI) climbed 5.7%.

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.

Article printed from InvestorPlace Media,

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