Both precious metals climbed higher on what is being called a “good enough” report out of China today. The world’s second largest economy reported that it grew 7.6 percent in the second-quarter of 2012, compared to a year earlier. It is the slowest pace in three years and fell slightly short of the 7.7 percent estimate.
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Although China’s GDP missed the estimate, the market viewed it as good enough to make hard landing fears take a back seat, but still slow enough to warrant more Chinese stimulus. “I think the 7.6 percent rise in GDP is largely priced in by the market and it partially alleviates some worries that the economy may plunge below 7 percent,” said Jiang Chao, an analyst at Guotai Junan Securities in Shanghai, according to Reuters. “But the figure is close to the alarming line of 7.5 percent set by the government, which means Beijing will intensify its efforts to further ease its policy to bolster growth.”
In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) jumped 1.09 percent, while the iShares Silver Trust (NYSEARCA:SLV) edged 0.53 percent higher. Gold miners (NYSEARCA:GDX) such as Newmont Mining (NYSE:NEM) and Yamana Gold (NYSE:AUY) gained 1.28 percent and 0.61 percent, respectively. Meanwhile, Silver Wheaton Corp. (NYSE:SLW) and First Majestic (NYSE:AG) increased 0.54 percent and 0.7 percent, respectively.
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Disclosure: Long EXK, AG, HL, PHYS