Gold and Silver Climb Higher, Euro Sinks to New Lows

By Eric McWhinnie | May 25, 2012 12:58 AM IST

On Thursday, gold (NYSEARCA:GLD) futures for June delivery increased $9.10 to settle at $1,557.50 per ounce, while silver (NYSEARCA:SLV) futures gained 64 cents to close at $28.16.

Both precious metals traded like true safe-havens, despite the U.S. dollar index climbing  to as high as 82.36, its highest level all year. The euro reached new 22-month lows as it sank to 1.2516. A preliminary euro-zone business activity report showed that private-sector activity in the region declined by the fastest rate in almost three years.

Don’t Miss: What are Hedge Funds Doing With Gold?

“The euro area might have side-stepped technical recession in the first quarter, but the indicators for the second quarter are looking increasingly ugly,” said James Ashley, senior European economist for RBC bank. JP Morgan economist Greg Fuzesi said the figures were a “big disappointment,” and the numbers prompted a cut in the bank’s forecasts for the euro-zone economy this year, according to the WSJ.

  • FOLLOW US
  • Google Plus

In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) edged .43 percent lower, while the iShares Silver Trust (NYSEARCA:SLV) increased 1.07 percent. Gold miners (NYSEARCA:GDX) such as Yamana Gold (NYSE:AUY) and Barrick Gold (NYSE:ABX) dropped 1.46 percent and 2.0 percent, respectively.  Silver names (NYSEARCA:SIL) such as Silver Wheaton (NYSE:SLW) and Silvercorp Metals Inc. (NYSE:SVM) both fell more than 2 percent.

Investor Insight: How Strong is Global Gold Demand?

If you would like to receive professional analysis on equity miners and other precious metal investmentswe invite you to try our premium service free for 14 days.

Disclosure: Long EXK, AG, HL, PHYS

The article was first published by Wall St. Cheat Sheet and does not represent the views or opinions of International Business Times.
Join the Conversation