Gold, Silver Move Lower as EU Outweighs U.S. Jobs Data

by Andrew Burger | January 6, 2012 11:37 am

[1]Gold and silver were moving lower to close out 2012’s first week of trading, even as the U.S. Bureau of Labor Statistics reported a better-than-expected 200,000 increase in December nonfarm payroll employment and the lowest unemployment rate — 8.5%[2] — in almost three years. Stocks and precious metals were being weighed down by EU sovereign debt concerns. Yields on Italian and Spanish treasury bonds[3] remain at elevated levels, according to one news report.

Having moved higher overnight, spot gold was trading some 0.43% lower at 10:20 a.m. Friday, with a bid price of $1,614.40 and an ask price of $1,615.40. Spot gold traded as high as $1,632.50 and as low as $1,612.50. The London afternoon reference price fix came in at $1,616.50, or $17.50 an ounce higher than Thursday’s price fix, according to Kitco market data[4].

Spot silver was down around 2.1%, bid at $28.75 an ounce with an ask price of $28.85. The morning high as of time of writing was $29.61 and the low was $28.60. Friday’s reference price was set at $29.40 in the London a.m., 48 cents an ounce higher than Thursday’s price fix.

A stronger dollar/weakening euro is contributing to the downward move in gold prices, according to BullionVault’s London Gold Market[5] report. “Liquidity remains locked up as the European interbank market continues to malfunction. . .in the physical market, we continue to see steady buying of gold. But this demand is more likely to provide support for gold on dips below $1,600 rather than push it substantially higher,” commented a Standard Bank commodities strategist.

Turning to U.S. exchange trading, gold and silver trusts were moving lower.

• The SPDR Gold Trust (NYSE:GLD[6]) was showing losses of some 0.65%.
• The iShares Gold Trust (NYSE:IAU[7]) was down nearly 0.6%.
• The iShares Silver Trust (NYSE:SLV[8]) was down around 1.9%.

Gold and silver mining ETFs also were closing out the week headed down.

• The Market Vectors Gold Miners ETF (NYSE:GDX[9]) was nearly 0.6% lower.
• The Market Vectors Junior Gold Miners ETF (NYSE:GDXJ[10]) was down some 0.35%.
• The Global X Silver Miners ETF (NYSE:SIL[11]) was around 0.8% lower.

Gold mining shares were heading lower.

• Agnico-Eagle Mines (NYSE:AEM[12]) was showing losses of 0.25%.
• Barrick Gold (NYSE:ABX[13]) was down some 0.6%.
• Eldorado Gold (TSE:ELD[14]) was down just 0.02%.
• Goldcorp (NYSE:GG[15]) was 1.8% lower.
• Newmont Mining (NYSE:NEM[16]) was down around 0.65%.
• NovaGold Resources (AMEX:NG[17]) was down some 0.2% and more.

Silver mining shares also were heading south.

• Coeur d’Alene Mines (NYSE:CDE[18]) was moving lower, down around 0.45%.
• Hecla Mining (NYSE:HL[19]) was down more than 1.2%.
• Pan American Silver (NASDAQ:PAAS[20]) was down around 0.2%.
• Silver Wheaton (NYSE:SLW[21]) was showing losses of nearly 1.8%.
• Silver Standard Resources (NASDAQ:SSRI[22]) was down 0.75%.

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.

Source URL: https://investorplace.com/2012/01/gold-silver-move-lower-as-eu-outweighs-u-s-jobs-data/

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