Gold & Silver Dip Slightly Lower After Economic Data is Revealed
Both precious metals edged slightly lower on the day as growth in the United States continues to slow. On Thursday, the Commerce Department announced that the nation’s gross domestic product increased at a 1.9 percent annual rate in the first-quarter. This was a downward revision from when the agency reported a 2.2 percent annual rate in April. In comparison, the GDP rate was at 3 percent in the fourth-quarter.
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A separate report by the Labor Department also showed that initial jobless claims increased by 10,000 to a seasonally adjusted 383,000 for the week ended May 26. It was the biggest jump in over a month and above expectations of about 370,000 claims. “While the recovery has remained largely on track, it continues to struggle to generate sufficient positive momentum to make any meaningful progress in absorbing the significant amount of slack,” said Millan Mulraine, an analyst with TD Securities USA, according to WSJ.
In afternoon trading, SPDR Gold Trust (NYSEARCA:GLD) declined .19 percent, while the iShares Silver Trust (NYSEARCA:SLV) fell .52 percent. Gold miners (NYSEARCA:GDX) such as Barrick Gold (NYSE:ABX) and Yamana Gold (NYSE:AUY) decreased .33 percent and 1.43 percent, respectively. Silver miners (NYSEARCA:SIL) such as Silvercorp Metals Inc. (NYSE:SVM) and First Majestic Silver (NYSE:AG) dropped 2.13 percent and 3.14 percent, respectively.
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Disclosure: Long EXK, AG, HL, PHYS