Gold and Silver Prices Fall On Bad PMI Results
Gold and silver prices fell sharply after US PMI (Purchasing Managers’ Index) data. Currently, world economies are being bolstered by active growth in the US, so today’s PMI data was a setback for metals prices.
The PMI is a survey given out to purchasing managers in Chicago asking them to rate their relative level of a number of business metrics, such as employment, production, new order, prices, supply deliveries, and inventory levels. It is used as a benchmark of economic health as businesses are usually fastest to adapt to falling market conditions.
May 2012 has been the worst single month for gold prices since 2000 with a 6% decline. This marks the third straight monthly decline.
August gold futures dropped 0.1% to close at $1,564.20.
July silver futures dropped 0.8% today to close at $27.757, concluding an 11% drop in prices this month and the third straight monthly decline — the longest fall since 2008
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