Gold Holds Above $1,600 after Weak China Data

On Monday, gold (NYSEARCA:GLD) futures for August delivery dipped $8.20 to settle at $1,613.90 per ounce, while silver (NYSEARCA:SLV) futures fell 51 cents to close at $28.

Both precious metals traded quietly after having their best one-day performance of the year on Friday. New data released today showed that China’s non-manufacturing sector grew at a slower pace in May. The nation’s Purchasing Managers’ Index fell from 56.1 in April to 52.2 in May.

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“US jobs data at the end of last week which revealed a disappointing May payrolls added to other data including weaker than expected Chinese PMI and even more disappointing euro zone data highlighting intensifying downside risks to economic activity,” said a note from Credit Agricole, according to International Business Times. China is the world’s second biggest economy and is on pace to surpass India as the biggest gold market.

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In afternoon trading, SPDR Gold Trust (NYSEARCA:GLD) edged .41 percent lower, while the iShares Silver Trust (NYSEARCA:SLV) declined .83 percent. Gold miner (NYSEARCA:GDX) Barrick Gold (NYSE:ABX) fell almost 1 percent, but Yamana Gold (NYSE:AUY) and AngloGold (NYSE:AU) gained about .65 percent. Silver miners (NYSE:SLW) such as First Majestic (NYSE:AG) and Coeur d’Alene Mines (NYSE:CDE) dropped more than 1 percent.

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Disclosure: Long EXK, AG, HL, PHYS