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Precious Metals, Miners Recover With Unchanged U.S. CPI

Gold, silver still heavily down for the week, however


Gold and silver were coming back strong Friday morning as the U.S. Consumer Price Index for November was unchanged from last month’s reading. Consumer prices as tracked by the CPI were 3.4% higher than November 2010, the U.S. Department of Labor’s Bureau of Labor Statistics reported Friday morning. European government bond yields were fluctuating relatively narrowly up and down, according to market reports.

Spot gold was up more than 1.3% at 10:40 a.m., with a bid price of $1,591.70 per ounce and an ask price of $1,592.70, having traded as high as $1,598.70 and as low as $1,581.50. The London afternoon reference price fix came in at $1,594, according to Kitco market data.

Spot silver was up more than 1.4%, bid at $29.70 per ounce with an ask price of $29.80. The morning high as of time of writing was $29.90 and the low was $29.33. Friday’s reference price was set at $29.78 in the London a.m.

Gold rallied 2.3% to hit $1,600 per ounce by lunchtime Friday in London, as demand for physical gold continued to improve, though it’s still down 7% on the week, according to a BullionVault report. Silver has lost 7% of its value this week, even with Friday morning’s gains. Net outflows from the SPDR Gold Trust (NYSE:GLD) totaled 15 metric tons, its biggest one-day total since August 2010.

“Bears are in the driver seat,” said Miguel Perez-Santalla, vice president of sales at Heraeus Precious Metals Management in New York, though he predicted gold will come back and rally as a result of a lack of confidence in the financial system.

Gold and silver trusts were moving higher in stock exchange trading.

  • The SPDR Gold Trust was showing gains of 1.5%.
  • The iShares Gold Trust (NYSE:IAU) was up 1.5%.
  • The iShares Silver Trust (NYSE:SLV) was up about 2.2%.

Gold and silver mining ETFs were showing strong gains.

  • The Market Vectors Gold Miners ETF (NYSE:GDX) was moving higher, up about 2.2%.
  • The Market Vectors Junior Gold Miners ETF (NYSE:GDXJ) was up over 5%.
  • The Global X Silver Miners ETF (NYSE:SIL) was up some 3.3%.

Gold mining shares were moving up smartly.

  • Agnico-Eagle Mines (NYSE:AEM) was showing gains of around 0.7%.
  • Barrick Gold (NYSE:ABX) was up about 2.8%.
  • Goldcorp (NYSE:GG) was showing gains just above 3%.
  • Newmont Mining (NYSE:NEM) was around 2% higher.
  • NovaGold Resources (AMEX:NG) was around 5.4% higher.

Silver mining shares were recovering nicely as well.

  • Coeur d’Alene Mines (NYSE:CDE) was moving higher, up around 2.5%.
  • Hecla Mining (NYSE:HL) was up more than 1.8%.
  • Pan American Silver (NASDAQ:PAAS) was nearly 3% higher.
  • Silver Wheaton (NYSE:SLW) was showing gains of more than 2.4%.
  • Silver Standard Resources (NASDAQ:SSRI) was up more than 6%.

As of this writing, Andrew Burger did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault contributed to this report.

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