Gold Holds, but Off Record Highs and Silver Stocks Surge

By Andrew Burger, InvestorPlace Contributor

Gold was firm and moving higher in early trading Friday morning, having hit a nominal record high $1594.90 an ounce yesterday, supported by ongoing government debt problems in the EU and US, as well as weaker than expected readings on the US economy.  Spot gold prices were up from the open and trading in a $1,577-$1,588 range with the London p.m. fix set at $1,587.  Spot silver was also firm and trading higher from the open, bid at $38.77 and offered at $38.87 in morning trade, with the London fix set at $38.17, according to Kitco market data.

With the EU’s banking regulator set to release the results of its latest quarterly stress tests, Greek, Portuguese and Spanish treasury note yields reached records, while Italian T-note yields rose as well.

The news in the U.S. wasn’t any better, with S&P joining Moody’s considering downgrading US Treasury debt below triple-A and partisan politics still getting in the way of an agreement to raise the US debt ceiling.  This morning’s readings on the economic, which included CPI, retail sales and industrial production data were also on the weak side.

Gold and silver ETFs were higher in Thursday morning trading, with the iShares Silver Trust (NYSE: SLV) gaining more than 1% in early trading.

  • The SPDR Gold Trust (NYSE:GLD) was up some 0.05% to 0.1%.
  • The iShares Gold Trust (NYSE:IAU) was flat.
  • The iShares Silver Trust (NYSE:SLV) was up more than 1.1%.

Gold and silver mining ETFs were also trading higher.

  • The Market Vectors Gold Miners ETF (NYSE:GDX) was up around 0.9%.
  • The Market Vector Junior Gold Miners ETF (NYSE: GDXJ) was up nearly 0.2%.
  • The Global X Silver Miners ETF (NYSE:SIL) was trading up around 0.9%.

Shares of gold mining majors and juniors were broadly higher, with Goldcorp (NYSE:GG) trading lower.

  • Agnico Eagle Mines (NYSE: AEM) was up 0.8%.
  • Barrick Gold (NYSE: ABX) was down more around 0.5%.
  • Goldcorp (NYSE: GG) was trading lower nearly 0.2%.
  • Newmont Mining Corp. (NYSE: NEM) was up more than 0.9%.
  • NovaGold Resources (USA) (AMEX: NG) was trading some 1.8% higher.

Silver mining shares were broadly higher, adding to big gains of the past two days, with Coeur D’Alene Mines surging close to 5%.

  • Coeur D’Alene Mines Corp. (NYSE:CDE) was trading sharply higher, up more than 4.8%.
  • Hecla Mining (NYSE:HL) was down nearly 1%.
  • Pan American Silver Corp. (NASDAQ:PAAS) was nearly 1.5% higher.
  • Silver Wheaton Corp. (NYSE:SLW) was up more than 1.3%.
  • Silver Standard Resources Inc. (NASDAQ:SSRI) was trading 0.8% higher.

The author does not hold positions in any of the above-mentioned investments.

Article printed from InvestorPlace Media,

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