Gold Rises on Warning of U.S. Credit Downgrade

The dollar slips as Moody's says the U.S. could lose its AAA rating

   

Gold Rises on Warning of U.S. Credit Downgrade

PreciousMetalsRecap Gold Rises on Warning of U.S. Credit DowngradeGold resumed its march toward a six-month high as the dollar slipped and investors sought security in the face of warnings of a U.S. credit downgrade from Moody’s.

Gold futures for December delivery rose to $1,734.10 on Tuesday, according to CME Group. Gold traded as high as $1,740.50 and as low as $1,728.70. Gold bullion closed in London at $1,735, according to BullionVault.

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Silver futures slipped slightly to $33.515 an ounce. Monday’s high for silver hit $33.875, while the low was $33.38.

Gold and silver funds edged up modestly on Tuesday.

  • The SPDR Gold Trust (NYSE:GLD) finished up 0.36%.
  • The iShares Gold Trust (NYSE:IAU) also was up 0.36%.
  • The iShares Silver Trust (NYSE:SLV) rose 0.37%.

Gold and silver mining ETFs also moved upward.

  • The Market Vectors Gold Miners ETF (NYSE:GDX) increased 0.67%.
  • The Market Vectors Junior Gold Miners ETF (NYSE:GDXJ) gained 1.26%.
  • The Global X Silver Miners ETF (NYSE:SIL) rose 0.53%.

Gold mining shares showed mostly small gains for the day, with Eldorado Gold (NYSE:EGO) leading the way.

  • Agnico-Eagle Mines (NYSE:AEM) inched up 0.40%.
  • Barrick Gold (NYSE:ABX) gained 0.20%.
  • Eldorado Gold increased 2.75%.
  • Goldcorp (NYSE:GG) rose 0.31%.
  • Kinross Gold (NYSE:KGC) edged up 0.21%.
  • Newmont Mining (NYSE:NEM) finished up 1.25%.
  • NovaGold Resources (AMEX:NG) was unchanged.
  • Yamana Gold (NYSE:AUY) closed down 2.12%

Silver mining shares also experienced the uptick.

  • Coeur d’Alene Mines (NYSE:CDE) was flat.
  • Hecla Mining (NYSE:HL) rose 0.88%.
  • Pan American Silver (NASDAQ:PAAS) edged up 0.16%.
  • Silver Wheaton (NYSE:SLW) gained 0.36%.
  • Silver Standard Resources (NASDAQ:SSRI) increased 1.55%.

As of this writing, Christopher Freeburn did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault contributed to this report.


Article printed from InvestorPlace Media, http://investorplace.com/2012/09/gold-rises-on-warning-of-u-s-credit-downgrade/.

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