How Unemployment Data Affected Precious Metals and Miners



Economic data impacts precious metals

Apart from the data mentioned in Part One of this series, other crucial data that impacted precious metals came out on April 1, 2016. The unemployment rate for March was higher than expected. The rate came in at 5%, higher than the expected 4.9%.

ISM Manufacturing data measures the level of a diffusion index based on surveyed purchasing managers in the manufacturing industry. The higher the figure, the better the health of the economy. The number was expected to be 50.8, but it stood higher at 51.8.

The unemployment rate cast a shadow upon the economic health of the country and likely delayed the expected interest rate hike, giving some breathing room to gold as it rose 0.59% on April 1, touching a high of $1,237.2 per ounce.

Volatility in gold has been increasing over the past few days. It stood at 16.4% on April 1.

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Silver remained volatile

The other three precious metals retreated on the day, with silver falling 2.4% to $15.04 an ounce. Historically, silver has been more volatile than gold. It’s the second-most famous precious metal. The ups and downs in the three-day chart seen above show the volatility in silver’s price during the last three trading days of March.

Miners react differently

The price changes in gold and silver saw movement in mining-based ETFs such as the Sprott Gold Miners ETF (SGDM) and the Global X Silver Miners ETF (SIL). These two funds maintained gains due to the rises in mining stocks. They rose marginally by 0.21% and 0.04%, respectively, on April 1.

Though most mining stocks maintained gains, the three stocks that rose the least on April 1 were Aurico Gold (AUQ), GoldCorp (GG), and Silver Wheaton (SLW). These three stocks rose 2.8%, 0.92%, and 1%, respectively.


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