Gold was higher, but silver dipped lower Monday morning as uncertainty regarding the global economic outlook in light of the threat of a collapsing eurzone dominated business news. A more pro-growth policy stance was evident in statements out of the weekend meeting of G8 leaders at Camp David, but no specific actions were announced.
Spot gold was up a slight 0.13%, bid at $1,594.20 an ounce as of 10:41 a.m. Prices reached as high as $1,597 and as low as $1,584, according to Kitco market data. The London afternoon reference price was set at $1,592.50, $3 an ounce above Friday’s afternoon reference price.
Spot silver was showing a 1.01% loss, bid at $28.43 an ounce. The morning high as of time of writing was $28.58, with the low reaching $28. Monday’s reference price was set at $28.39, nine cents an ounce below Friday’s price fix.
Supportive of Greece staying in the eurozone and looking to defuse the threat of financial markets contagion, G8 country leaders at a Camp David meeting hosted by President Obama on Saturday said austerity measures need to be balanced with pro-growth economic actions and measures to induce jobs growth. They also said they would take concerted action should oil prices begin to rise quickly. With tighter sanctions on Iran looming, they said they are ready to increase supplies.
Gold bullion reached a seven-trading session high of nearly $1,600 an ounce in London wholesale market trading Monday, BullionVault reported.
“Spot Gold rallied [last week] on speculation that the Feds will come through with a QE3 package,” BullionVault quoted Commerzbank, Luxembourg. “Renewed physical demand, deteriorating European conditions, and a poor Philly Fed print [on the manufacturing index] seemed to be the catalyst for the rebound,” according to refinery and finance group MKS’s Australian office.
Gold and silver trusts were showing weakness.
The SPDR Gold Trust (NYSE:GLD) was showing losses of less than 0.1%.
The iShares Gold Trust (NYSE:IAU) was down around 0.13%.
The iShares Silver Trust (NYSE:SLV) was around 1.1%-1.35% lower.
Gold and silver mining ETFs were building on their last end-of-week gains.
The Market Vectors Gold Miners ETF (NYSE:GDX) was showing gains of nearly 1.7%.
The Market Vectors Junior Gold Miners ETF (NYSE:GDXJ) was up some 2.3%.
The Global X Silver Miners ETF (NYSE:SIL) was around 0.8% higher.
Gold mining shares were showing healthy gains across the board.
Agnico-Eagle Mines (NYSE:AEM) was up around 1%.
Barrick Gold (NYSE:ABX) was some 1.75% higher.
Eldorado Gold (NYSE:EGO) was down around 0.1%.
Goldcorp (NYSE:GG) was up some 1.15%.
Kinross Gold Corp. USA (NYSE:KGC) was surging higher, up around 3.5%.
Newmont Mining (NYSE:NEM) was showing gains of around 2.6%.
NovaGold Resources (NYSEAMEX:NG) was up around 3.5%.
Yamana Gold (USA) (NYSE:AUY) was up some 3.6%.
Silver mining shares were up sharply as well.
Coeur d’Alene Mines (NYSE:CDE) was up around 2%.
Hecla Mining (NYSE:HL) was more than 2.8% higher.
Pan American Silver (NASDAQ:PAAS) was showing gains of around 1.9%.
Silver Wheaton (NYSE:SLW) was up around 2.15%.
Silver Standard Resources (NASDAQ:SSRI) was up some 2.85%.
As of this writing, Andrew Burger did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault contributed to this report.
