Precious Metals Show Strength on Dollar Weakness, China’s Gold Imports Climb Higher

Wall St. Cheat Sheet

On Thursday, gold (NYSEARCA:GLD) futures for August delivery, the most active contract, jumped $17.30 to close at $1,415.80 per ounce, while silver (NYSEARCA:SLV) futures for July increased 24 cents to finish at $22.71. It was gold’s highest settlement since May 14.

Both precious metals climbed higher as the U.S. dollar index, which compares the dollar in a basket against six other fiat currencies, dropped more than 1 percent. The Dow Jones Industrial Average and S&P 500 also spent most of the day in the red, but managed to squeeze out a gain by the closing bell.

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China’s gold imports from Hong Kong totaled 126,135 kilograms in April, down from 223,519 kilograms in March. However, April’s total was still the second highest haul on record. Compared to last year, gold imports in April were almost 22 percent higher.

By the end of the day, shares of the SPDR Gold Trust (NYSEARCA:GLD) gained 0.75 percent, while the iShares Silver Trust (NYSEARCA:SLV) increased 0.70 percent. Gold miners (NYSEARCA:GDX) such as Yamana Gold (NYSE:AUY) and Newmont Mining (NYSE:NEM) gained 1.9 percent and 1.0 percent, respectively. Shares of First Majestic Silver (NYSE:AG) surged 2.5 percent higher.

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