Deal to Avert Fiscal Cliff Sends Gold Higher

Gold and silver futures rise Wednesday; miners join in on the fun


Deal to Avert Fiscal Cliff Sends Gold Higher

PreciousMetalsRecap Deal to Avert Fiscal Cliff Sends Gold HigherGold advanced in Wednesday’s trading on the heels of a budget agreement approved by the U.S. House of Representatives that preserved Bush-era tax cuts on the middle class and averted the worst effects of the fiscal cliff.

Gold futures for February delivery rose 0.8% to $1,688.80 on Wednesday, according to CME Group. Gold traded as high as $1,695.40 and as low as $1,670.90. Gold bullion closed in London at $1,668, according to BullionVault.

11103054 gold bullion 200x200 Deal to Avert Fiscal Cliff Sends Gold Higher
Is the Selloff in Gold and Silver Overblown?

Silver futures for February delivery increased 2.5% % to $30.98 per ounce. Wednesday’s high for silver was $31.45, while the low was $30.22.

Gold and silver funds advanced in Wednesday trading.

  • The SPDR Gold Trust (NYSE:GLD) climbed 0.7%.
  • The iShares Gold Trust (NYSE:IAU) also rose 0.7%.
  • The iShares Silver Trust (NYSE:SLV) gained 1.9%.

Gold and silver mining ETFs also rose during the day.

  • The Market Vectors Gold Miners ETF (NYSE:GDX) added 1.6%.
  • The Market Vectors Junior Gold Miners ETF (NYSE:GDXJ) surged 3.6%.
  • The Global X Silver Miners ETF (NYSE:SIL) soared 3.5%.

Gold mining shares moved higher, with NovaGold Resources (AMEX:NG) rising highest.

  • Agnico-Eagle Mines (NYSE:AEM) increased 1.7%.
  • Barrick Gold (NYSE:ABX) rose 1.5%.
  • Eldorado Gold (NYSE:EGO) soared 3%.
  • Goldcorp (NYSE:GG) climbed 2.3%.
  • Kinross Gold (NYSE:KGC) gained 1.5%.
  • Newmont Mining (NYSE:NEM) advanced 1%.
  • NovaGold Resources rocketed up 7.3%.
  • Yamana Gold (NYSE:AUY) moved up 0.7%.

Silver mining shares also gained on Wednesday.

  • Coeur d’Alene Mines (NYSE:CDE) rose 2.3%.
  • Hecla Mining (NYSE:HL) surged 4.9%.
  • Pan American Silver (NASDAQ:PAAS) gained 2.6%.
  • Silver Wheaton (NYSE:SLW) also increased 2.6%
  • Silver Standard Resources (NASDAQ:SSRI) advanced 3.4%.

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.

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