Gold Stocks On The Move

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) GLD was down 1.3 percent.
• Gold Fields Limited (ADR) GFI was down 4.4 percent.
• Direxion Shares Exchange Traded Fund Trust JNUG was down 7.3 percent.
• Direxion Shares Exchange Traded Fund Trust NUGT was down 7.1 percent.
• Sibanye Gold Ltd (ADR) SBGL was down 3.5 percent.
• Direxion Shares Exchange Traded Fund Trust 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."

Separately, Bloomberg reported that gold "sank like a stone at 9 a.m. in London after a huge spike in volume in New York futures that traders said was probably the result of a 'fat finger,' or erroneous order."

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