Both precious metals traded mostly flat after posting large gains on Friday, as the U.S. dollar climbed to as high as 81.39 on Monday.
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According to the latest Gold Demand Trends report by the World Gold Council, the world continues to have a strong appetite for the precious metal, despite higher prices in the first-quarter of 2012 when compared to a year earlier.
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For the first-quarter, gold investment demand jumped 13 percent to 389.3 tonnes, compared to 343.5 tonnes a year earlier. Within the investment sector, demand for ETFs showed a stark contrast from the previous year. WGC reports, “First-quarter demand for ETFs and similar products totaled 51.4 tonnes, equivalent to a value of $2.8 billion. This compares favorably with the first-quarter of 2011, when the sector saw net outflows of 62.1 tonnes.” That’s a swing of 113.5 tonnes in only one year.
In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) decreased .07 percent, while the iShares Silver Trust (NYSEARCA:SLV) fell .76 percent. Despite bullion-related names ticking slightly lower, several miners continued to rally from multi-month lows. Gold miners (NYSEARCA:GDX) such as Barrick Gold (NYSE:ABX) and Newmont Mining (NYSE:NEM) both jumped more than 3 percent. Meanwhile, silver names such as Silver Wheaton (NYSE:SLW) and Endeavour Silver (NYSE:EXK) surged 4.5 percent and 5.8 percent, respectively.
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Disclosure: Long EXK, AG, HL, PHYS