On Wednesday, May 25, 2016, gold continued its slide for the sixth-straight day. Although gold has been declining, volumes of gold have been increasing as compared to the start of 2016. Gold has shed 2.1% on a five-day-trailing basis and closed at $1,226.6 per ounce after touching a low of $1220.6. This was a seven-week low.
The volatility in silver remains high at 24.9%. Silver has performed better than gold, losing only 0.2% on a five-day-trailing basis. Silver closed at $16.3 per ounce on May 25.
New home sales
The annualized number of new single-family homes that were sold during April came in at 619,000. This figure was much higher than expected, which suggests better economic condition in the markets. And the better the face of the economy, the lower the appeal of haven assets like gold and silver, which also adversely impacts the Vaneck Gold Miners Fund (GDX) and the Global X Silver Miners Fund (SIL). These two funds have decreased by 2.3% and 3.5%, respectively, on a five-day-trailing basis as of May 25.
Mining shares also plunged during this time frame. Gold Fields (GFI), Aurico Gold (AUQ), and New Gold (NGD) saw their shares fall by 7.2%, 4.5%, and 9.9%, respectively, on a five-day trailing basis. Notably, these three companies combined make up 6.8% of GDX.