Gold and Silver Keep Shining After Weak Data
Both precious metals have held gains in recent days as more easing measures remain a possibility ahead of next week’s Federal Reserve meeting. U.S. retail sales declined for the second consecutive month in May, edging 0.2 percent lower. April’s sales were also revised from a 0.1 percent gain to a 0.2 percent decline, according to a Commerce Department report released today. Excluding autos, sales fell 0.4 percent in May, the biggest decline in two years, after dropping 0.3 percent the prior month.
Don’t Miss: Patience Pays with Gold and Silver
“The consumer is pulling back,” said Michael Brown, an economist at Wells Fargo Securities LLC,according to Bloomberg. “There isn’t a lot of job creation. We will continue to see softer numbers.” The Labor Department also announced today that the producer price index dropped 1 percent last month, mostly due to lower energy prices. It was the biggest drop in the index since July 2009.
In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) increased .31 percent, while the iShares Silver Trust (NYSEARCA:SLV) declined .37 percent. Gold miners (NYSEARCA:GDX) such as Goldcorp Inc. (NYSE:GG) and Yamana Gold (NYSE:AUY) gained 1.75 percent and .62 percent, respectively. Silver investments such as Silver Wheaton (NYSE:SLW) and Endeavour Silver Corp. (NYSE:EXK) both fell more than 1 percent.
Investor Insight: Gold and Silver Are Your Hedges Against Centrally-Planned Economies