On Friday, gold (NYSEARCA:GLD) futures for December delivery increased $4.90 to settle at $1,730.90 per ounce, while silver (NYSEARCA:SLV) jumped 36 cents to close at $32.60. Gold prices increased $55.70 on the week, while silver jumped $1.74.
Both precious metals climbed higher, despite China’s annual consumer inflation being reported at its lowest rate in 33 months. The nation’s consumer price index increased 1.7 percent from a year earlier in October, down from from 1.9 percent in September. Economists expected a rise of 1.9 percent.
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The lower-than-expected inflation data renewed belief that Chinese officials could provide more stimulus to the economy. “The CPI I think came in a little bit lower than we expected and the market expected and further confirms that inflation is not a main concern for the government for now,” said Zhang Zhiwei, Chief China Economist at Nomura, according to Reuters. “So policy easing will likely continue for this quarter to support growth’s recovery. We don’t think they will cut interest rates for the rest of the year but we think they will probably keep the credit supply, the total social financing, at a high level for the coming months.”
By the end of the day, the SPDR Gold Trust (NYSEARCA:GLD) finished flat, while the iShares Silver Trust (NYSEARCA:SLV) edged 0.51 percent higher. Gold miners such as Yamana Gold (NYSE:AUY) and Barrick Gold (NYSE:ABX) both declined more than 1 percent. Silver Wheaton (NYSE:SLW) and Endeavour Silver (NYSE:EXK) edged 0.52 percent and 0.33 percent lower, respectively.
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Disclosure: Long EXK, AG, HL, PHYS