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Gold stocks rose Tuesday, with the top mining ETF (NYSEARCA:GDX) rose 1.3% after gold futures settled at another all-time high despite gains in the dollar and US Treasury yields, with US interest rates likely to rise to long term.
The dollar rose after data on Monday showed the U.S. manufacturing sector grew for the first time in March in a year and a half.
Analysts have noted some safe haven demand for gold in relation to yesterday’s attack by Israel on an Iranian diplomatic building in Syria that killed a top Iranian general, fueling fears of a widening conflict in the Middle Orient.
Saxo Bank’s Ole Hansen also said the underlying bid from central banks and retail was joined by momentum-tracking speculators who extended their already elevated longs after gold broke above $2,200 l ‘ounce.
First-month Comex gold (XAUUSD:CUR) for April delivery is out +1.1% at $2,261.00 an ounce, a new all-time high and sixth consecutive daily increase, while front-month April Comex silver (XAGUSD:CUR) closed +3.4% at $25,804/oz, the best liquidation value since May 4 last year.
ETFs: (NYSEARCA:GLD), (GDX), (GDXJ), (IAU), (NUGT), (PHYS), (GLDM), (AAAU), (SCHOOL), (BAR), (OUNZ), (SLV), (PSLV), (SLVP), (SIVR), (SIL), (SILJ)
Among the mining stocks that posted 52-week intraday highs: Agnico Eagle Mines (AEM), Eldorado Gold (EGO), Equinox Gold (EQX), Harmony Gold (HMY), Hudbay Minerals (HBM), Iamgold (IAG), McEwen Mining (MUX)
“While investor positioning was showing increasing signs of exhaustion given modest declines through the end of March, fresh gains in both gold and silver prices in recent trading sessions have likely revitalized investor interest in the sector to begin the new quarter,” JPM Global Commodities Research writes.
Additionally, Mexican state oil company Pemex has asked its trading unit to write off up to 436,000 bbl/day of crude exports this month as the company prepares to begin processing domestic oil at its new Olmeca refinery, Reuters reported.