Gold rose sharply in Monday trading on reports of continued strong demand for gold jewelry, coins and bars in Asia.
The metal was also boosted by growing unrest in Egypt that could topple the elected government of Mohamed Morsi, possibly unleashing a military crackdown. Rising tensions in the Middle East typically increase gold’s appeal as a safe haven investment.
Gold futures for August delivery surged 2.6% to $1,255.70 per ounce on Monday, according to CME Group. Gold traded as high as $1,261.70 and as low as $1,224.10. Gold bullion closed in London at $1,255, according to BullionVault.
Silver futures for August delivery rose 0.6% to $19.57 per ounce. Monday’s high for silver was $19.84 while the low was $19.42.
Gold and silver funds mostly advanced in Monday trading.
- The SPDR Gold Trust (GLD) gained 1.7%.
- The iShares Gold Trust (IAU) increased 1.5%.
- The iShares Silver Trust (SLV) slipped 0.2%.
Gold and silver mining ETFs improved during the day.
- The Market Vectors Gold Miners ETF (GDX) added 1.6%.
- The Market Vectors Junior Gold Miners ETF (GDXJ) rose 1.8%.
- The Global X Silver Miners ETF (SIL) climbed 2.5%.
Gold mining shares mostly gained on Monday.
- Agnico-Eagle Mines (AEM) increased 3.2%.
- Barrick Gold (ABX) fell 3.2%.
- Eldorado Gold (EGO) climbed 1.6%.
- Goldcorp (GG) advanced 3.1%.
- Kinross Gold (KGC) was unchanged.
- Newmont Mining (NEM) edged up 0.8%.
- NovaGold Resources (NG) rose 3.8%.
- Yamana Gold (AUY) added 2.8%.
Silver mining shares mostly moved higher during the day.
- Coeur d’Alene Mines (CDE) dropped 4.4%.
- Hecla Mining (HL) added 1%.
- Pan American Silver (PAAS) grew 1.3%.
- Silver Wheaton (SLW) increased 2.5%.
- Silver Standard Resources (SSRI) gained 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.