Gold prices popped Monday after durable-goods orders suggested that the U.S. manufacturing sector was softening. Gold for June delivery at the COMEX division of the CME jumped $14.90 to $1,423.70 an ounce. The gold price traded as high as $1,433.60 and as low as $1,411.50 an ounce, while the spot price was adding $17.60, according to Kitco's gold index.
"If we see signs of a weaker economy it tends to be positive for gold, because it changes expectations for monetary policy," said Jeffrey Nichols, senior economic adviser at Rosland Capital. "So today's durable goods orders being a big disappointment has some... thinking that the [Federal Reserve] isn't going to tighten sooner."
The Census Bureau reported Wednesday that durable-goods orders dropped 5.7% in March after they had risen 4.3% the prior month. Economists surveyed by Thomson Reuters were expecting orders to decline 2.8%.
Last month's Fed policy-making meeting revealed a growing number of members were considering scaling back the central bank's current monetary stimulus programs, but a weak March jobs report, softer housing data and vacillating manufacturing indicators likely have forced central bankers to reconsider their hope to curb quantitative easing.
"Durable goods is a volatile report," Robert Brusca, chief economist of Fact & Opinion Economics, wrote in a note. "However, over three months only 14% of the durable goods sectors representing 27% of sales show shipments that are accelerating."
Silver for May delivery rose 2 cents to $22.83 an ounce, while the U.S. dollar index was dipping 0.08% to $82.95.
Silver prices suffered in 2012 from a setback in global economic growth as industrial demand softened, according to the Silver Institute's 2013 world silver survey that came out Wednesday.
The survey found that silver's industrial fabrication dropped to 465.9 million ounces from 487.8 million ounces in 2011, and that overall silver fabrication demand dropped to 846.8 million ounces in 2012 from 907.1 million ounces a year earlier.
While silver has seen about a 13% drop since April 12, when gold started its two-session collapse, some believe silver could be poised for a recovery in the second half of this year.
TRY IT FREEJim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
$2.5+ million portfolioLarge-cap and dividend focusIntraday trade alerts from CramerWeekly roundupsTRY IT FREEJim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Diversified model portfolio of dividend stocksAlerts when market news affect the portfolioBi-weekly updates with exact steps to take - BUY, HOLD, SELLTRY IT FREEDavid Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
Model portfolioStocks trading below $10Intraday trade alertsWeekly roundupsTRY IT FREE24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
Jim Cramer + 20 Wall Street prosIntraday commentary & newsReal-time trading forumActionable trade ideasTRY IT FREEAll of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
Real Money + Doug Kass + 15 more Wall Street ProsIntraday commentary & newsUltra-actionable trading ideasTRY IT FREEOur options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
100+ monthly options trading ideasActionable options commentary & newsReal-time trading communityOptions TV