Gold and Silver Climb Higher After Inflation Report, Miners Lag Behind

Wall St. Cheat Sheet

On Friday, gold (NYSEARCA:GLD) futures for August delivery, the most active contract, increased $9.80 to close at $1,387.60 per ounce, while silver (NYSEARCA:SLV) futures for July jumped 37 cents to finish at $21.95.

Both precious metals received a lift today, as the U.S. Department of Labor reported that its seasonally adjusted producer price index gained 0.5 percent in May, easily beating estimates calling for a 0.1 percent increase. In comparison, wholesale prices fell 0.7 percent in April.

Continue Reading Below

Furthermore, the Thomson Reuters/University of Michigan’s preliminary reading on consumer sentiment fell to 82.7 in June, compared to 84.5 in May. Unsurprisingly, survey director Richard Curtin notes that confidence declined the most among lower-income households, which were “more likely to report worsening overall financial prospects” than higher-income households.

In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) increased 0.40 percent, while iShares Silver Trust (NYSEARCA:SLV) jumped 1.30 percent. However, major gold miners (NYSEARCA:GDX) such as Barrick Gold (NYSE:ABX) and Newmont Mining (NYSE:NEM) dropped more than 1.0 percent. Silver miners (NYSEARCA:SIL) also declined across the board.

Don’t Miss: Is There Any Hope Left for Gold Bugs?

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

Follow Eric on Twitter (@Mr_Eric_WSCS)

original article