Gold and silver were weaker on October 26
After starting the day on a weaker note, gold and silver fell lower as the day progressed. At 2:10 AM EST on October 26, the COMEX copper futures contract for December delivery was trading at $1,267.05 per ounce—a fall of ~0.51%. The silver contract for December delivery fell ~0.51% to $1,267.15 per ounce.
Better-than-expected US economic data
The better-than-expected US economic data, including new home sales and services PMI, were released on October 26. According to the U.S. Department of Commerce, new homes sales rose 3.1% in September to 593,000 units. The market expected new home sales to fall 1%. On the other hand, the US services PMI also beat the expectations. According to Markit, the US services PMI rose to 54.8 in October. It was better than the previous month’s reading and the market’s expectations of 52.3. An index value above 50 indicates expansion in services activity for a given period, while a value below 50 indicates a contraction.
Gold and silver prices were weaker on October 26 due to increased expectations of an interest rate hike. The chances of an interest rate hike in December rose to 78.3% on October 26. Gold and silver started the day on a weaker note but fell after the release of US economic data. Read Copper, Gold, and Silver Are Weaker Early on October 26 to learn how metals traded in the early hours.
At 2:30 PM EST on October 26, precious metal producers Barrick Gold (ABX), Newmont Mining (NEM), Silver Wheaton (SLW), and Royal Gold (RGLD) fell ~1.9%, ~1.5%, ~1.8%, and ~1.6%, respectively. The SPDR Gold Trust ETF (GLD) fell ~0.57%.
In the next part, we’ll discuss how companies in the energy sector performed on October 26.