Gold and Silver Start Week in Positive Territory
On Monday, gold (NYSEARCA:GLD) futures for June delivery, the most active contract, increased $13.80 to close at $1,467.40 per ounce, while silver (NYSEARCA:SLV) futures for July jumped 38 cents to finish at $24.17.
Both precious metals climbed higher as Texas-based manufacturers experienced a sharp decline in activity in April, according to the Federal Reserve Bank of Dallas. The general business index, which is used to judge economic health in the region, plunged to -15.6, compared to 7.4 in March.
It was the lowest reading since July 2012, and the biggest miss of expectations on record. It was also the biggest one-month drop for the index, and another reason as to why the Federal Reserve will continue with its highly accommodative monetary policies.
By the end of the day, the SPDR Gold Trust (NYSEARCA:GLD) gained 1 percent, while the iShares Silver Trust (NYSEARCA:SLV) jumped 1.9 percent. Gold miners (NYSEARCA:GDX) such as Barrick Gold (NYSE:ABX) and Newmont Mining (NYSE:NEM) increased 3.8 percent and 1.5 percent, respectively. Shares of Endeavour Silver (NYSE:EXK) gained 2.1 percent.
Here’s how the market traded Monday:
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Disclosure: Long EXK, AG, HL, PHYS