Gold and Silver Hold Steady After GDP Data

On Friday, gold (NYSEARCA:GLD) futures for December delivery dipped $1.10 to settle at $1,711.90 per ounce, while silver (NYSEARCA:SLV) edged 4 cents lower to close at $32.04.

Both precious metals held relatively steady, as the U.S. economy grew at a slightly better pace than estimated, but not enough for significant progress. The Commerce Department reported that the gross domestic product increased at a 2 percent annual rate from July through September, compared to a 1.25 percent rate in the prior quarter.

Don’t Miss: Will Gold Rescue Debt Ridden Nations in the Eurozone?

The Government increasing its spending on defense and other items was a large factor in GDP topping estimates of 1.8 percent. Government consumption and expenditures soared 9.6 percent after decreasing 0.2 percent in the second quarter. Defense spending surged 13 percent after also decreasing 0.2 percent during the previous period.

By the end of the trading day, the SPDR Gold Trust (NYSEARCA:GLD) closed 0.05 percent in the red, while the iShares Silver Trust (NYSEARCA:SLV) fell 0.13 percent. Gold miners (NYSEARCA:GDX) such as Barrick Gold (NYSE:ABX) and Yamana Gold (NYSE:AUY) both declined by almost 1 percent. Silver names such as Endeavour Silver (NYSE:EXK) and Silver Wheaton (NYSE:SLW) both managed to close 0.51 percent higher.

Investor Insight: Will Central Banks Hit an American Express Gold Limit?

If you would like to receive professional analysis on miners and other precious metal investments, we invite you to try our premium service free for 14 days.

Disclosure: Long EXK, AG, HL, PHYS