Gold and Silver Climb Higher, Despite Stronger U.S. Dollar
Both precious metals posted gains, despite the current account deficit narrowing in the second quarter and the U.S. dollar index climbing higher today. During the April through June period, the broad measure of U.S. international transactions logged a shortfall of $117.41 billion, compared to a $133.62 billion shortfall in the first quarter. Economists expected a deficit of $125 billion. Meanwhile, the greenback climbed to as high as 79.28, but is still in the red for the year.
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Ryan Sweet, a senior economist at Moody’s Analytics said, “We’re going to see the current-account deficit widen. Exports are going to weaken, a reflection of the problems in Europe and slowing emerging markets. Trade may be neutral to a drag,” according to Bloomberg.
In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) increased 0.52 percent, while the iShares Silver Trust (NYSEARCA:SLV) jumped 1.64 percent. Gold miners (NYSEARCA:GDX) were mixed with Yamana Gold (NYSE:AUY) gaining 0.50 percent, but Barrick Gold (NYSE:ABX) falling 0.62 percent. First Majestic Silver (NYSE:AG) and Endeavour Silver (NYSE:EXK) both increased more than 1 percent.
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Disclosure: Long EXK, AG, HL, PHYS