Gold, Silver Start the Week Climbing

by Andrew Burger | January 23, 2012 12:04 pm

Gold and silver were moving higher Monday to start the week’s trading, as market attention is focused across the Atlantic, where eurozone finance ministers are expected to decide on a government debt resolution package offered by private sector bondholders[1]. In other European news, the EU parliament voted to implement an embargo on Iranian oil imports[2] that’s set to go into effect July 1.

U.S. earnings season is in full swing — Dow Jones Transportation Index component CSX Corp. (NYSE:CSX[3]) reports earnings after the bell today — but the U.S. economic data calendar is light until Thursday, when the Labor Department reports on weekly initial claims for unemployment insurance.

Spot gold was showing a gain of just over 0.5% this morning, bid at $1,675.50 per ounce with an ask price of $1,676.50. Spot gold traded as high as $1,679.50 and as low as $1,665.60. The London afternoon reference price fix came in at $1,675.50, $22.50 per ounce higher than Friday’s reference price, according to Kitco market data[4].

Spot silver was up 0.84%, bid at $32.47 per ounce with an ask price of $32.57. The morning high as of time of writing was $32.71 and the low was $31.84. Friday’s reference price was set at $32.45 in the London a.m., $2.09 per ounce higher than Friday’s price fix.

Shares of Vancouver’s Pan American Silver (NASDAQ:PAAS[5]) were getting hammered as management announced it’s acquiring Vancouver’s Minefinders for total compensation of $15.60 per share based on their Jan. 20 closing price, with a total transaction valued around $1.5 billion. Silver production for the combined company is expected to increase from some 26 million ounces currently to more than 50 million ounces by 2015.

Gold bullion prices hit a six-week high[6] of $1,677 an ounce in London morning trading Monday, according to BullionVault’s London Gold Market report. “Near-term technical have turned more bullish (for gold),” according to the latest technical analysis from Scotia Mocatta, though the precious metals dealer sees “psychological resistance looming at $1,700.”

Gold and silver trusts were showing gains Monday morning.

• The SPDR Gold Trust (NYSE:GLD[7]) was moving higher, up over 0.5%.
• The iShares Gold Trust (NYSE:IAU[8]) was showing gains of nearly 0.7%.
• The iShares Silver Trust (NYSE:SLV[9]) was up about 1%.

Gold and silver mining ETFs were showing strong gains.

• The Market Vectors Gold Miners ETF (NYSE:GDX[10]) was showing gains of more than 1.2%.
• The Market Vectors Junior Gold Miners ETF (NYSE:GDXJ[11]) was up nearly 2.3%.
• The Global X Silver Miners ETF (NYSE:SIL[12]) was up around 2%.

Gold mining shares were showing healthy gains, with Kinross Gold (NYSE:KGC[13]) and Yamana Gold (NYSE:AUY[14]) leading the way.

• Agnico-Eagle Mines (NYSE:AEM[15]) was showing gains of about 1.1%.
• Barrick Gold (NYSE:ABX[16]) was up 1.4%.
• Eldorado Gold (NYSE:EGO[17]) was up less than 0.1%.
• Goldcorp (NYSE:GG[18]) was up around 0.4%.
• Kinross Gold was up more than 3.5%.
• Newmont Mining (NYSE:NEM[19]) was trading flat.
• NovaGold Resources (AMEX:NG[20]) was up nearly 1.2%.
• Yamana Gold was trading sharply higher, up almost 3.7%.

Silver mining shares were showing strong gains for the most part. Silver Standard Resources’ (NASDAQ:SSRI[21]) shares were sharply higher, though the company has issued no news releases. PAAS shares were plummeting.

• Coeur d’Alene Mines (NYSE:CDE[22]) was moving higher, up more than 1.9%.
• Hecla Mining (NYSE:HL[23]) was up around 0.2%.
• Pan American Silver was down around 8%.
• Silver Wheaton (NYSE:SLW[24]) was showing gains of more than 3.2%.
• Silver Standard Resources was up about 4%.

As of this writing, Andrew Burger did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault [25]contributed to this report.

Source URL: https://investorplace.com/2012/01/gold-silver-prices-pan-american-silver-paas-gld-mining-stocks/

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