Gold and Silver Climb Higher, Euro Sinks to New Lows
By Eric McWhinnie | May 25, 2012 12:58 AM IST
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.
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“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.
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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.
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Disclosure: Long EXK, AG, HL, PHYS