Gold and Silver Climb Higher After Inflation Report, Miners Lag Behind
On Friday, gold (NYSEARCA:GLD) futures for August delivery, the most active contract, increased $9.80 to close at $1,387.60 per ounce, while silver (NYSEARCA:SLV) futures for July jumped 37 cents to finish at $21.95.
Both precious metals received a lift today, as the U.S. Department of Labor reported that its seasonally adjusted producer price index gained 0.5 percent in May, easily beating estimates calling for a 0.1 percent increase. In comparison, wholesale prices fell 0.7 percent in April.
Furthermore, the Thomson Reuters/University of Michigan’s preliminary reading on consumer sentiment fell to 82.7 in June, compared to 84.5 in May. Unsurprisingly, survey director Richard Curtin notes that confidence declined the most among lower-income households, which were “more likely to report worsening overall financial prospects” than higher-income households.
In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) increased 0.40 percent, while iShares Silver Trust (NYSEARCA:SLV) jumped 1.30 percent. However, major gold miners (NYSEARCA:GDX) such as Barrick Gold (NYSE:ABX) and Newmont Mining (NYSE:NEM) dropped more than 1.0 percent. Silver miners (NYSEARCA:SIL) also declined across the board.
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Disclosure: Long EXK, AG, HL, PHYS
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