Good U.S. December industrial production and producer price inflation numbers buoyed silver and stocks Wednesday morning, but gold was slightly lower.
Spot gold was down nearly 0.2%, with a bid price of $1,648.40 per ounce and an ask price of $1,649.40. Spot gold traded as high as $1,656.60 and as low as $1,641.10. The London afternoon reference price fix came in at $1,647, $9 per ounce lower than Tuesday’s reference price, according to .
Spot silver was up 1%, bid at $30.36 per ounce with an ask price of $30.46. The morning high as of time of writing was $30.52 and the low was $29.93. Friday’s reference price was set at $30.15 in the London a.m., 26 cents per ounce lower than yesterday’s price fix.
U.S. industrial production after falling 0.3% in November — the 10th consecutive and largest gain of 2011. For Q4, industrial production increased at an annual 3.1% rate. Manufacturing output rose 0.9% in December with “similarly sized gains for both durables and nondurables.” December’s capacity utilization rate came in at 78.1%, 2.3% below its long-run average. Total industrial production in December was 2.9% above its level a year ago, according to the Fed.
The Bureau of Labor Statistics reported that December’s seasonally adjusted for finished goods fell 0.1% after increasing 0.3% in November and falling 0.3% in October. the intermediate goods index fell 0.5%, and crude goods prices dropped 1.1% in the last month of 2011.
Gold bullion prices rallied and reached $1,658 an ounce in London morning trading, though they remained below the hit yesterday, BullionVault reports in its London Gold ÃÛÌÒ´«Ã½ report.
“Gold is working on its third up week,” according to Scotia Mocatta technical analysts’ latest market commentary. “(Gold) faces critical resistance at $1,667 (which) was the mid-November low. Our view is that while $1,667 holds, (the) big picture risk remains bearish.”
Gold trusts were lower and the iShares Silver Trust (NYSE:) was moving higher.
- The SPDR Gold Trust (NYSE:) was showing losses of around 0.25%.
- The iShares Gold Trust (NYSE:) was down some 0.2%.
- The iShares Silver Trust was up around 0.7%.
Gold and silver mining ETFs were moving higher early Wednesday.
- The ÃÛÌÒ´«Ã½ Vectors Gold Miners ETF (NYSE:) was showing gains of more than 0.3%.
- The ÃÛÌÒ´«Ã½ Vectors Junior Gold Miners ETF (NYSE:) was up around 1.1%.
- The Global X Silver Miners ETF (NYSE:) was up 1.3%.
Gold mining shares were broadly higher, with Kinross Gold (NYSE:) shares showing strong gains.
- Agnico-Eagle Mines (NYSE:) was showing gains of around 0.7%.
- Barrick Gold (NYSE:) was up nearly 0.4%.
- Eldorado Gold (NYSE:) was showing gains approaching 0.4%.
- Goldcorp (NYSE:) was up nearly 0.7%.
- Kinross Gold was up 2.5%.
- Newmont Mining (NYSE:) was down another 1% and more.
- NovaGold Resources (AMEX:) was down nearly 0.7%.
- Yamana Gold (NYSE:) was trading 0.55% higher.
Silver mining shares were mixed.
- Coeur d’Alene Mines (NYSE:) was moving higher, up nearly 1.5%.
- Hecla Mining (NYSE:) was down nearly 1.5%.
- Pan American Silver (NASDAQ:) was down nearly 0.8%.
- Silver Wheaton (NYSE:) was showing gains of more than 1.3%.
- Silver Standard Resources (NASDAQ:) was up around 1.5%.
As of this writing, Andrew Burger did not hold a position in any of the aforementioned securities. Adrian Ash of contributed to this report.
