Gold and Silver Edge Lower after Manufacturing Report
By Eric McWhinnie | May 2, 2012 5:09 AM EST
Both precious metals remained relatively quiet as the U.S. manufacturing sector showed expansion in April. According to the Institute for Supply Management, the manufacturing purchasing managers’ index last month increased to 54.8, compared to 53.4 in March. It was the fastest pace since June. A reading above 50 signals expansion.
Don’t Miss: Gold & Silver: Bernanke Overshadows FOMC Minutes
Economists were expecting a slight decrease in the index to 52.9. Ellen Zenter, a senior U.S. economist at Nomura Securities International Inc., said, “Manufacturing continues to be a bright spot in the recovery. We have yet to see a drop-off in foreign demand for U.S. manufactured goods and that comes despite all the concerns of a slowdown in the global economy,” according to Bloomberg.
In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) declined .32 percent, while the iShares Silver Trust (NYSEARCA:SLV) traded flat. Gold miners (NYSEARCA:GDX) such Yamana Gold (NYSE:AUY) and AngloGold Ashanti (NYSE:AU) edged .20 percent and .61 percent higher. Silver investments such as Hecla Mining Co. (NYSE:HL) and Silver Wheaton Corp. (NYSE:SLW) increased 2.3 percent and .21 percent, but Pan American Silver Corp. (NASDAQ:PAAS) fell 1.08 percent.
Investor Insight: Do Central Banks Still Love Gold?
If you would like to receive professional analysis on equity miners and other precious metal investments, we invite you to try our premium service free for 14 days.
Disclosure: Long EXK, AG, HL, PHYS