Gold and Silver Decline After Jobs Report
By Eric McWhinnie | May 3, 2012 5:29 AM EST
Both precious metals struggled as the private-sector added fewer jobs than predicted. According to a report by ADP, employment in the private sector increased by only 119,000 jobs in April, well below expectations of 170,000. Service-sector jobs increased by 123,000, but manufacturing and construction jobs both fell by 5,000 each.
Don’t Miss: Do Central Banks Still Love Gold?
“This is an upsetting report,” said David Carter, chief investment officer at Lenox Advisors in New York, according to Reuters. “The strength of the U.S. economic rebound is clearly still uncertain. Hopefully we don’t get a third consecutive summer of weaker growth.” The markets still await the Bureau of Labor Statistics’ nonfarm-payroll data, which is to be released on Friday.
In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) decreased .43 percent, while the iShares Silver Trust (NYSEARCA:SLV) dropped 1.10 percent. Gold miners (NYSEARCA:GDX) such as AngloGold Ashanti (NYSE:AU) and Newmont Mining (NYSE:NEM) both declined more than 2 percent. Silver miners (NYSEARCA:SIL) such as First Majestic (NYSE:AG) and Silvercorp Metals (NYSE:SVM) dropped 2.9 percent and 3.3 percent, respectively.
Shares of Barrick Gold Corp. (NYSE:ABX) fell 2.5 percent, despite reporting higher profits in the first-quarter. The miner said net income increased to $1.03 billion, compared to $1.0 billion a year earlier. Revenue increased 18 percent to $3.64 billion, but analysts were expecting $3.74 billion.
Investor Insight: What Do Americans Think About 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
Most Popular Slideshows
- Taylor Swift Named Forbes' Second Highest Paid Country Musician [PHOTOS]
- Forever Lost: Indescribable Anguish for Malaysia Airlines MH17 Families, Remains of Some Victims May Never Be Found (PHOTOS)
- Global Aviation Accidents: UN to Form Safety Task Force, Gov'ts Should Share Intelligence Info to Avert Future Incidents on Flying Over Warzones (PHOTOS)
- PageSix: Beyonce & Jay Z Union is Not About Love, All About Business & the Brand
Join the Conversation
- Gold in China: 127-Tonne Gold Reserves Tapped in Xinjiang
- Global Markets Overview – July 15, 2014
- Honduran Gold Mine Caves in; 8 Rescued, 3 Remain Trapped (PHOTOS)
- Chinese Govt Tightens Control on Gold to Curb Imports, Could Drop 400T from 2013 – Report
- ANZ Seeks Role in Pilot Global Gold Trading Platform in Shanghai
- Samsung Galaxy S5 Alpha Leaks Online: Release Date, Five Features to Wait for New Smart Phone
- Freshly Leaked Apple iPad Air 2 Cases Confirm Touch ID Sensor; Release Date, Limited Specs and Price Listed
- Moto X Android 4.4.4 KitKat Update Guide: Schedule and How to Install
- Photos of Motorola Moto X+1 Prototype and Specs Leak Online, Release Date, Four Fresh Features Revealed
- Sony Xperia Z3: Release Date, Five Features to Expect from New Android Smart Phone
- Top 4 Reasons Why iPhone 6 Will Hit Big Soon After its Sept 2014 Release Date
- Top Surprising Features Of iOS 8