Gold Closes Down Month On Down Note

Published on Monday, 30 April 2012 18:07 Written by Todd Shriber

New York, April 30^th (TradersHuddle.com) – A tough April came to a close with gold notching a modest loss on Monday. The yellow metal also tallied a monthly loss, but one that was more tolerable than what was seen with other precious metals.  Comex gold for June delivery lost 60 cents, or less than 0.1%, to settle at $1,664.20 an ounce. For the month, the yellow metal declined half a percent. As we noted last week, data from the U.S. Commodity Futures Trading Commission indicate traders have been reducing their net long exposure to gold and other commodities.

Some traders may take it as a good sign that gold was not punished on a day when Spain, the Euro Zone’s fourth-largest economy, confirmed it is mired in a recession. Europe’s current recession tally probably includes all of the PIIGS as well as the U.K. and maybe France. Still, give gold some credit for holding up relatively well today.

U.S. economic news was no help either as the Commerce Department said personal incomes rose 0.4% in March topping the 0.3% increase economists expected. Spending rose 0.3%, missing the 0.4% increase economists expected. The Chicago Purchasing Managers Index dropped to 56.2% in April from 63.3% in March, good for a 29-month low. Economists expected a 60.8% reading.

Those data points hampered silver more than gold as the iShares Silver Trust (NYSE: SLV) lost 0.9% on weak volume. Despite the decline in gold futures, the SPDR Gold Shares (NYSE: GLD) added 0.3% while the iShares Gold Trust jumped 0.2%. Investors have pulled cash from SLV over the past week, perhaps indicating appetites for silver are waning.

Copper futures were not too volatile on the day, but the iPath DJ-UBS Copper TR Sub-Index ETN (NYSE: JJC) added 0.3% on weak trade. The miners were problematic as the Global X Copper Miners ETF (NYSE: COPX) resumed its losing ways, falling 1.25% on the day. Freeport-McMoRan (NYSE: FCX) was able to claw its way to gain of nearly half a percent and that stock appears to be firming in the $38 area.

Platinum and palladium were mixed on the day as the ETFS Physical Platinum Shares (NYSE: PPLT) took a small loss, but the ETFS Physical Palladium Shares (NYSE: PALL) notched a modest gain.

The Global X Silver Miners ETF (NYSE: SIL) was solid once again and once again, SIL’s up day arrived on volume that was well above average. The Market Vectors Junior Gold Miners ETF (NYSE: GDXJ) was found modestly higher on the day while the Market Vectors Gold Miners ETF (NYSE: GDX) closed in the red.