Gold stocks were moving on high volume
in Monday’s pre-market session on anticipation of and reaction to May’s durable goods data, released at 8:30 a.m ET.
The change in new orders for manufactured durable goods can have an impact on whether the Federal Reserve will continue with
rate hikes, which in turn tend to inversely affect the performance of gold.
In anticipation of the report, most major gold stocks were down in the mid- to high-single digits on high volume. At 8:30
a.m.:
-
SPRD Gold Trust (ETF) (NYSE: GLD) was down
1.3 percent.
-
Gold Fields Limited (ADR) (NYSE: GFI) was
down 4.4 percent.
-
Direxion Shares Exchange Traded Fund Trust (NYSE: JNUG) was down 7.3 percent.
-
Direxion Shares Exchange Traded Fund Trust (NYSE: NUGT) was down 7.1 percent.
-
Sibanye Gold Ltd (ADR) (NYSE: SBGL) was
down 3.5 percent.
-
Direxion Shares Exchange Traded Fund Trust (NYSE: JDST), which moves inversely to gold miners’ performance, was up 7.5 percent.
The report showed a drop in new orders for manufactured
durable goods by 1.1 percent, significantly below the 0.6 percent decrease expected by economists.
The data comes on the heels of a 0.9 percent decrease in April.
Although poor for the economy overall, the data was good for gold and all of the above mentioned stocks reversed their movement
following the news.
MarketWatch
noted that "a recovery in oil prices lured investors back into stocks and other riskier assets away from the haven metal."
Related Links:
A Peek Into The Markets: U.S. Stock Futures Gain Ahead Of Durable-Goods Orders Report
Stocks To Watch For June 26,
2017
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