Gold turned upward in European trading Friday morning, improving from the $1,585-per-ounce level to hit $1,605 per ounce before heading back toward $1,600. Silver was trading nearly $1 per ounce higher, hitting $40 in London before falling back to $39.85 in early New York trading.

Government debt negotiations in the United States and European Union continue to dominate financial news. EU finance ministers agreed to a second, 159 billion euro ($229 billion) Greek bailout yesterday that also includes granting the 440 billion euro European Stabilization Fund the ability to buy EU government debt.

The EU and IMF will provide 109 billion euros of the total bailout funding, and banks will pony up 50 billion euros. The banks also have agreed to a series of bond exchanges and buybacks, according to a Bloomberg News report. Fitch Ratings said this amounts to a “restricted default” on Greek debt.

Spot gold was trading at $1,603.90 Bid, $1,604.90 Ask early Friday in New York, having been set at $1,602 per ounce at the London p.m. fix. Spot silver was trading at $40.15 Bid, $40.25 Ask, having been set at $39.67, according to Kitco market data.

Gold and silver ETFs were headed up Friday morning.

• The SPDR Gold Trust (NYSE:GLD) was up nearly 0.9%.
• The iShares Gold Trust (NYSE:IAU) was up around 0.85%.
• The iShares Silver Trust (NYSE:SLV) jumped more than 2%.

Gold and silver mining ETFs also were trading higher.

• The Market Vectors Gold Miners ETF (NYSE:GDX) was up nearly 1%.
• The Market Vector Junior Gold Miners ETF (NYSE:GDXJ) was up between 1.7% and 1.95%.
• The Global X Silver Miners ETF (NYSE:SIL) was trading more than 1.3% higher.

Shares of gold mining majors and juniors were making a strong move higher early Friday.

• Agnico Eagle Mines (USA) (NYSE:AEM) was trading between 1.3% and 1.5% higher.
• Barrick Gold Corp. (NYSE:ABX) was up between 0.65% and 0.75%.
• Goldcorp (NYSE:GG) was moving up around 1.7% to 1.85%.
• Newmont Mining Corp. (NYSE:NEM) was more than 1.8% higher.
• NovaGold Resources (USA) (AMEX:NG) was up around 2%.

Silver mining shares were sharply higher, with most of the group gaining more than 2% in early Friday trading.

• Coeur D’Alene Mines Corp. (NYSE:CDE) was around 2.9% higher.
• Hecla Mining (NYSE:HL) was trading more than 2.6% higher.
• Pan American Silver Corp. (USA) (NASDAQ:PAAS) was up around 1.3%
• Silver Wheaton Corp. (USA) (NYSE:SLW) was around 2.4% higher.
• Silver Standard Resources Inc. (USA) (NASDAQ:SSRI) was up 2.23%.

The author does not hold positions in any of the aforementioned investments.