Gold Jumps on Yellen Testimony

Pan American Silver, Agnico-Eagle among surging miners

   

Gold Jumps on Yellen Testimony

PreciousMetalsRecap Gold Jumps on Yellen TestimonyRemarks by Janet Yellen, President Barack Obama’s nominee to succeed Ben Bernanke as chairman of the Federal Reserve, buoyed investor optimism that the Fed would not begin an early tapering of its monthly bond-buying, sending gold futures up sharply in Thursday trading.

The metal closed higher for the first time in six sessions.

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In testimony at a Senate confirmation hearing, Yellen noted that the U.S. economy was performing “far short” of the growth the Fed wants to see, even though it had improved in recent months. Investors interpreted her comments to mean that the Fed will continue to back stimulus in the near-term.

Gold futures for December delivery gained 1.4% to $1,286.30 per ounce on Thursday, according to CME Group. Gold traded as high as $1,293.80 and as low as $1,277.30. Bullion closed in London at $1,285, according to BullionVault.

Silver futures for December also rose 1.4% to $20.72 per ounce. Thursday’s high for silver was $20.89, while the low was $20.57.

Metal funds climbed in Thursday trading.

  • The SPDR Gold Shares (GLD) added 1.2%.
  • The iShares Gold Trust (IAU) rose 1.1%.
  • The iShares Silver Trust (SLV) moved up 1.3%.

Mining ETFs moved higher during the day.

  • The Market Vectors Gold Miners ETF (GDX) increased 2.7%.
  • The Market Vectors Junior Gold Miners ETF (GDXJ) gained 3%.
  • The Global X Silver Miners ETF (SIL) jumped 3.1%.

Gold stocks advanced on Thursday.

  • Agnico-Eagle Mines (AEM) surged 4.7%.
  • Barrick Gold (ABX) inched up 0.1%.
  • Eldorado Gold (EGO) added 2.9%.
  • Goldcorp (GG) rose 2.3%.
  • Kinross Gold (KGC) climbed 3.4%.
  • Newmont Mining (NEM) increased 2.9%.
  • NovaGold Resources (NG) moved up 1.3%.
  • Yamana Gold (AUY) rose 2.2%.

Silver mining shares improved during the day.

  • Coeur d’Alene Mines (CDE) surged 4%.
  • Hecla Mining (HL) gained 2.3%.
  • Pan American Silver (PAAS) soared 7.6%.
  • Silver Wheaton (SLW) added 3.8%.
  • Silver Standard Resources (SSRI) increased 3.7%.

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/2013/11/gold-yellen-testimony-paas-aem/.

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