Gold Holds Above $1,600 After Weak China Data
Both precious metals traded quietly after having their best one-day performance of the year on Friday. New data released today showed that China’s non-manufacturing sector grew at a slower pace in May. The nation’s Purchasing Managers’ Index fell from 56.1 in April to 52.2 in May.
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“US jobs data at the end of last week which revealed a disappointing May payrolls added to other data including weaker than expected Chinese PMI and even more disappointing euro zone data highlighting intensifying downside risks to economic activity,” said a note from Credit Agricole, according to International Business Times. China is the world’s second biggest economy and is on pace to surpass India as the biggest gold market.
In afternoon trading, SPDR Gold Trust (NYSEARCA:GLD) edged .41 percent lower, while the iShares Silver Trust (NYSEARCA:SLV) declined .83 percent. Gold miner (NYSEARCA:GDX) Barrick Gold (NYSE:ABX) fell almost 1 percent, but Yamana Gold (NYSE:AUY) and AngloGold (NYSE:AU) gained about .65 percent. Silver miners (NYSE:SLW) such as First Majestic (NYSE:AG) and Coeur d’Alene Mines (NYSE:CDE) dropped more than 1 percent.
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Disclosure: Long EXK, AG, HL, PHYS