Post-Government Shutdown: Gold and Silver Log Weekly Gains
On Friday, gold (NYSEARCA:GLD) futures for December — the most active contract — fell $8.40 to close at $1,314.60 per ounce, while silver (NYSEARCA:SLV) futures edged 3 cents lower to finish at $21.93. Major exchanged-traded funds, like the SPDR Gold Trust and iShares Silver Trust, also finished the day relatively flat.
Gold and silver were quiet as the S&P 500 climbed higher to another all-time high, with the help of Google (NASDAQ:GOOG). Shares of the Internet giant surged nearly 14 percent after announcing its latest quarterly earnings.
However, gold and silver still made impressive gains this week after Congress agreed to reopen the government and suspend the debt ceiling. Earlier this week, the Senate approved a bill with a vote of 81-18 to end the partial shutdown through January 15, and suspend the debt ceiling through February 7. Shortly thereafter, the House of Representatives passed the bill with a vote of 285-144. The shutdown ranks as the third longest in American history.
Although silver prices have been declining for the past two years, CPM Group believes the precious metal could reach new all-time highs within the next 10 years. “Investors are expected to step up their purchases, backed by expectations for strong capital appreciation amid rising industrial demand for the metal,” said the commodities research firm. “In this scenario, silver prices could rise rapidly, possibly touching fresh record highs within the next ten years.”
By the end of the trading day, shares of the SPDR Gold Trust (NYSEARCA:GLD) dipped 0.50 percent, while the iShares Silver Trust (NYSEARCA:SLV) gained 0.30 percent. Gold miners (NYSEARCA:GDX) Yamana Gold (NYSE:AUY) and Newmont Mining (NYSE:NEM) fell 2 percent and 0.50 percent, respectively. Shares of Endeavour Silver (NYSE:EXK) jumped 1.4 percent.
Shares of the SPDR Gold Trust and iShares Silver Trust are down about 22 percent and 28 percent year-to-date, respectively.
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Disclosure: Long EXK, AG, HL, PHYS