Spot gold was sharply higher, up 3.01%, bid at $1,598.70 an ounce at 11:27 a.m. The morning high reached $1,602, with the low at 1,580.50, according to Kitco market data. The London afternoon reference price was fixed at $1,598.50, a whopping $40 an ounce higher than Thursday’s price fixing.
Spot silver was up 4.41%, bid at $27.48. The day’s high thus far was $28.05 and the low $27.17. The London a.m. reference price was fixed at $27.08, 27 cents an ounce above Thursday’s reference price.
U.S. consumer confidence sank to its lowest level this year in June, according to the Thomson Reuters/Univ. of Michigan final index of consumer sentiment. The index dropped to 73.2 from a May reading of 79.3.
Raising financial markets’ spirits, eurozone leaders agreed that emergency bailout funds could be lent directly to banks rather than having to flow through national governments, which has been adding to their deficits and debt levels.
The agreement also means that countries whose banks receive such funds won’t be subject to the oversight and austerity conditions imposed on Greece, Ireland and Portugal by the so-called “troika” of the IMF, European Central Bank (ECB) and European Commission (EC). They also also agreed to create a single bank supervisory authority by the end of the year.
Gold prices rallied for a 2.3% gain, reaching as high as $1,584 an ounce in London morning trading Friday, BullionVault reported. “Resistance is at the top of the past week’s range in the $1,587-88 area,” BullionVault quoted Scotia Mocatta technical analysts, adding that “further resistance is seen at $1,625.”
News of eurozone leaders’ agreement “has been positive for the Euro and positive for confidence in general,” added Simon Weeks, who heads precious metals at Scotia Mocatta.
Gold and silver trusts were up sharply in U.S. stock exchange trading.
- The SPDR Gold Trust (NYSE:GLD) was showing gains of around 2.65%.
- The iShares Gold Trust (NYSE:IAU) was trading around 2.7% higher.
- The iShares Silver Trust (NYSE:SLV) was up around 4.1%.
Gold and silver mining ETFs were surging higher as well.
- The Market Vectors Gold Miners ETF (NYSE:GDX) was up around 2.4%.
- The Market Vectors Junior Gold Miners ETF (NYSE:GDXJ) was up around 5%.
- The Global X Silver Miners ETF (NYSE:SIL)was some 4.1% higher.
Gold mining shares were showing strong gains across the board.
- Agnico-Eagle Mines (NYSE:AEM) was up around 1.6%.
- Barrick Gold (NYSE:ABX) was up some 2.15%.
- Eldorado Gold (NYSE:EGO) was around 1.65% higher.
- Goldcorp (NYSE:GG) was up around 3%.
- Kinross Gold (NYSE:KGC) was up some 2.65%.
- Newmont Mining (NYSE:NEM) was showing gains of around 1.3%.
- NovaGold Resources (AMEX:NG) was down more than 3%.
- Yamana Gold (NYSE:AUY) was around 2.3% higher.
Silver mining shares were up sharply heading into the close of the week’s trading.
- Coeur d’Alene Mines (NYSE:CDE) was up around 1.8%.
- Hecla Mining (NYSE:HL) was up some 4.15%.
- Pan American Silver (NASDAQ:PAAS) was up around 1.85%.
- Silver Wheaton (NYSE:SLW) was around 3.3% higher.
- Silver Standard Resources (NASDAQ:SSRI) was showing gains of some 3.85%.
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.