Manufacturing Data Boosts Gold, Silver

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Gold Silver GLD IAU SLVGold and silver were higher on manufacturing reports from China and the U.S., among other data Monday morning.

Spot gold was up 0.7%, having traded as high as $1,684.90 and as low as $1,664 per ounce, according to Kitco market data. The London afternoon reference price was set at $1,677.50, $15 per ounce higher than Friday’s afternoon reference price.

Spot silver was showing a sharp gain of 2.6%, bid at $33.12, with an ask price of $33.22. The morning high as of time of writing was $33.35 and the low was $32.31. Monday’s reference price was set at $32.42 in the London a.m., 1 cent per ounce below Friday’s price fix.

U.S. manufacturing expanded in March for the 32nd consecutive month, while the overall economy grew for the 34th consecutive month, the Institute of Supply Management reported. Fifteen of 18 manufacturing industries tracked by ISM reported growth in March.

The PMI was at 53.4%, up 1 percentage point from February’s reading. The Production Index was up 3 percentage points from February’s reading of 55.3%, and the Employment Index was up 2.9 points to 56.1%. “Of the 18 industries included in the survey, 15 are experiencing overall growth,” stated Bradley J. Holcomb, ISM chairman. “Comments from the panel remain positive, with several respondents citing increased sales and demand for the next few months.”

The Census Bureau reported a 1.1% monthly decline in February construction spending, lower than a consensus forecast of a 0.5% gain. February 2012 construction spending was 5.8% above the year-ago level, while January-February’s total is 7.4% above the first two months of 2011.

Gold prices drifted lower before jumping to $1,669 an ounce in London morning trading Monday, following a more positive report on China manufacturing overnight, BullionVault reported in its London Gold Market Report.

“Gold (is) still respecting the long-term uptrend,” according to the latest technical analysis note from bullion bank Scotia Mocatta.

In U.S. stock exchange trading, gold and silver trusts were moving higher.

  • The SPDR Gold Trust (NYSE:GLD) was up some 0.67%.
  • The iShares Gold Trust (NYSE:IAU) was up nearly 0.7%.
  • The iShares Silver Trust (NYSE:SLV) was up some 2.5%.

Gold and silver mining ETFs were moving higher, with the Global X Silver Miners ETF (NYSE:SIL) up well over 3%.

  • The Market Vectors Gold Miners ETF (NYSE:GDX) was showing gains of more than 1.9%.
  • The Market Vectors Junior Gold Miners ETF (NYSE:GDXJ) was showing gains of nearly 1.8%.
  • The Global X Silver Miners ETF was sharply higher, up nearly 3.2%.

Gold mining shares were sharply higher.

  • Agnico-Eagle Mines (NYSE:AEM) was showing sharp gains of around 3.7%.
  • Barrick Gold (NYSE:ABX) was up around 1.9%.
  • Eldorado Gold (NYSE:EGO) was up nearly 2%.
  • Goldcorp (NYSE:GG) was more than 2.6% higher.
  • Kinross Gold (NYSE:KGC) was up some 2.3%.
  • Newmont Mining (NYSE:NEM) was up around 2.15%.
  • NovaGold Resources (AMEX:NG) was higher, up more than 1.9%.
  • Yamana Gold (NYSE:AUY) was up around 2.7%.

Silver mining shares were moving up sharply and strongly as well.

  • Coeur d’Alene Mines (NYSE:CDE) was showing sizable gains of around 3.7%.
  • Hecla Mining (NYSE:HL) was up more than 3%.
  • Pan American Silver (NASDAQ:PAAS) was showing gains of around 2.4%.
  • Silver Wheaton (NYSE:SLW) was up nearly 3%.
  • Silver Standard Resources (NASDAQ:SSRI) was up around 2.65%.

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.


Article printed from InvestorPlace Media, https://investorplace.com/2012/04/manufacturing-data-boosts-gold-silver/.

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