Gold surged in Tuesday trading after Federal Reserve Chairman Ben Bernanke told the U.S. Senate Banking Committee that he believes that the benefits of continued economic stimulus efforts outweigh the risks. Bernanke’s comments signaled that Fed bond-buying would continue, boosting the metal’s appeal as a hedge against inflation.
Gold futures for March delivery jumped 1.8% to $1,615 per ounce on Tuesday, according to CME Group. Gold traded as high as $1,618.40 and as low as $1,583.40. Gold bullion closed in London at $1,616, according to BullionVault.
Silver futures for March delivery also rose 0.9% to $29.26 per ounce. Tuesday’s high for silver was $29.43, while the low was $28.55.
Gold and silver funds advanced in Tuesday trading.
- The SPDR Gold Trust (NYSE:GLD) rose 1.2%.
- The iShares Gold Trust (NYSE:IAU) increased 1.3%.
- The iShares Silver Trust (NYSE:SLV) also gained 1.2%.
Gold and silver mining ETFs also moved higher during the day.
- The Market Vectors Gold Miners ETF (NYSE:GDX) climbed 1.2%.
- The Market Vectors Junior Gold Miners ETF (NYSE:GDXJ) edged up 0.2%.
- The Global X Silver Miners ETF (NYSE:SIL) advanced 0.4%.
Gold mining shares gained on Tuesday.
- Agnico-Eagle Mines (NYSE:AEM) climbed 2.8%.
- Barrick Gold (NYSE:ABX) moved up 1.5%.
- Eldorado Gold (NYSE:EGO) added 2.1%.
- Goldcorp (NYSE:GG) gained 2.3%.
- Kinross Gold (NYSE:KGC) rose 1%.
- Newmont Mining (NYSE:NEM) increased 1.2%.
- NovaGold Resources (AMEX:NG) surged 4%.
- Yamana Gold (NYSE:AUY) advanced 0.7%.
Silver mining shares also mostly increased.
- Coeur d’Alene Mines (NYSE:CDE) rose 0.8%.
- Hecla Mining (NYSE:HL) improved 0.4%.
- Pan American Silver (NASDAQ:PAAS) dipped 0.3%.
- Silver Wheaton (NYSE:SLW) gained 1.1%.
- Silver Standard Resources (NASDAQ:SSRI) moved up 1.3%.
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.