Gold gained in Tuesday trading after the Chinese government reported that its consumer price index for June rose 2.7% compared to last year.
Economists had been expecting a rise of 2.5%, so the CPI surprise fueled a move into gold. (Higher inflation increases gold’s value as a safe haven asset.) Asian gold demand has been strengthening in recent months.
Gold futures for August delivery advanced 0.9% to $1,245.90 per ounce on Tuesday, according to . Gold traded as high as $1,258.70 and as low as $1,232. Gold bullion closed in London at $1,250, according to BullionVault.
Silver futures for August delivery increased 0.5% to $19.13 per ounce. Tuesday’s high for silver was $19.44 while the low was $19.06.
Gold and silver funds rose in Tuesday trading.
- The SPDR Gold Trust () gained 0.9%.
- The iShares Gold Trust () added 0.8%.
- The iShares Silver Trust () also increased 0.8%.
Gold and silver mining ETFs improved during the day.
- The Market Vectors Gold Miners ETF () climbed 1.4%.
- The Market Vectors Junior Gold Miners ETF () advanced 2.7%.
- The Global X Silver Miners ETF () rose 1.9%.
Gold mining shares were mixed on Tuesday.
- Agnico-Eagle Mines () dipped 0.8%.
- Barrick Gold () gained 0.9%.
- Eldorado Gold () rose 2.7%.
- Goldcorp () climbed 2.5%.
- Kinross Gold () slipped 0.4%.
- Newmont Mining () edged up 0.2%.
- NovaGold Resources () fell 0.5%.
- Yamana Gold () dropped 0.2%.
Silver mining shares were mostly higher during the day.
- Coeur d’Alene Mines () sank 0.6%.
- Hecla Mining () rose 0.4%.
- Pan American Silver () surged 3.5%.
- Silver Wheaton () climbed 2.7%.
- Silver Standard Resources () also gained 2.7%.
As of this writing, Christopher Freeburn did not hold a position in any of the aforementioned securities. Adrian Ash of contributed to this report.
