On Friday, gold (NYSEARCA:GLD) futures for August delivery, the most active contract, declined $19.00 to close at $1,393 per ounce, while silver (NYSEARCA:SLV) futures for July dropped 45 cents to finish at $22.24. The price of gold has now declined for seven of the past eight months.
Both precious metals experienced weakness as consumer sentiment managed to climb higher. According to the Thomson Reuters/University of Michigan’s final reading, consumer sentiment in May rose to 84.5, compared to 76.4 in April. This is the highest level for the index since July 2007. The median forecast in a Bloomberg survey called for an increase to 83.7.
Furthermore, the Chicago purchasing managers’ index surged to 58.7 in May, compared to 49.0 in the previous month and well above estimates calling for 49.9. A reading above 50.0 indicates expansion.
By the end of the trading day, shares of the SPDR Gold Trust (NYSEARCA:GLD) dropped 2 percent, while the iShares Silver Trust (NYSEARCA:SLV) fell 2.5 percent. However, gold miners (NYSEARCA:GDX) such as Barrick Gold (NYSE:ABX) and Yamana Gold (NYSE:AUY) both decreased less than 1 percent. Shares of First Majestic Silver (NYSE:AG) plunged 4.3 percent.
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Disclosure: Long EXK, AG, HL, PHYS