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Gold & Silver Prices Fall to 3 ½-Month Low on U.S. Data

Gold and silver spot values retreated significantly at the sound of the opening trading bell Tuesday, and much of the blame for the metals’ losses was placed squarely on the latest round of economic data released by the U.S. government.

U.S.-based orders for durable goods rose 0.8% in April, the most recent month for which data is available. The U.S. Department of Commerce has reported that April’s rise marks the third consecutive month in which durable goods orders rose, although CIBC World Markets analyst Andrew Grantham has noted that April’s rise in durable goods orders was mainly due to the temporary boost in defense spending. Analysts had previously predicted that durable goods orders could fall by as much as 0.5% in May.

Consumer confidence is up this month, although that claim by the Consumer Confidence Index does come with a caveat. While the CCI reported that consumer confidence rose from 81.7 to 83.0, the University of Michigan/Thomson Reuters consumer sentiment report found that consumer sentiment fell to 81.8 in May from April’s 84.1 reading. Additionally,  T.D. Securities strategist Gennadiy Goldberg said recently rising consumer confidence numbers have not translated into more consumer purchasing.

Analysts on both political sides have been accused of mucking the economic numbers to favor their respective side’s stance on the current state of the economy, and investors who would prefer the facts without the spin may wish to request a complimentary copy of the 2014 Insider’s Guide to Gold, & Silver Investing available by calling our information desk toll-free or by selecting your free e-guides below.

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