Gold and Silver Edge Lower after Manufacturing Report
By Eric McWhinnie | May 2, 2012 12:39 AM IST
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.
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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.
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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.
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Disclosure: Long EXK, AG, HL, PHYS