On Tuesday, gold (NYSEARCA:GLD) futures for December — the most active contract — increased $15.90 to close at $1,412 per ounce, while silver (NYSEARCA:SLV) futures jumped 92 cents to finish at $24.43. Both precious metals received buying support. President Barack Obama is currently seeking authorization from Congress before attacking Syria, and early signs are indicating that he has support from key Republicans.
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After a meeting with the president, House Speaker John Boehner said, “The use of these weapons has to be responded to, and only the U.S. has the capability. I’m going to support the president’s call for action and I believe my colleagues should support this call for action.”
The Dow Jones Industrial Average (NYSEARCA:DIA) quickly erased its gains after the comments. The 10-year U.S. Treasury yield also spiked above 2.9 percent — its highest level in two months — as manufacturing data was better than expected. The Institute for Supply Management’s manufacturing purchasing managers index increased to 55.7 last month. That is the best reading since June 2011. A reading above 50 indicates expansion.
By the end of the trading day, shares of the SPDR Gold Trust (NYSEARCA:GLD) increased 1.3 percent, while the iShares Silver Trust (NYSEARCA:SLV) jumped 3.5 percent. Gold miners (NYSEARCA:GDX) Barrick Gold (NYSE:ABX) and Yamana Gold (NYSE:AUY) both gained more than 1 percent. Shares of Endeavour Silver (NYSE:EXK) surged 4 percent.
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Disclosure: Long EXK, AG, HL, PHYS