Gold and silver were recovering Tuesday morning as financial markets stabilized somewhat following Monday’s sharp losses and loss of confidence — this despite the U.S. Bureau of Economic Analysis revising Q3 GDP downward to 2% from a previous estimate of 2.5%. The bias is decidedly downward, with continued high volatility expected across nearly all markets and asset classes given the persistent inability of government leaders to resolve European Union sovereign debt and U.S. budget issues.

Shares of NovaGold Resources (AMEX:NG) were surging higher on reports of large, prominent hedge funds acquiring shares following last week’s news that the company would spin off its Alaskan Ambler copper mining project and sell as much as 50% of its stake in its Galore Creek copper and gold project in British Columbia.

Spot gold was more than 1.4% higher around 10:30 a.m. Tuesday, while spot silver was up nearly 1.75%.

Spot gold was bid at $1,701.10 per ounce with an ask price of $1,702.10, having traded at a high of $1,703.50 and a low of $1,685.60. The afternoon reference price fixing was set at $1,699, according to Kitco market data.

Spot silver was bid at $32.19 per ounce with an ask price of $32.29. The morning high as of time of writing was $32.30, and the low was $31.40. Monday’s reference price was set at $31.85 in the London a.m.

Gold and silver trusts were showing strong gains Tuesday morning.

• The SPDR Gold Trust (NYSE:GLD) was around 1.2% higher.
• The iShares Gold Trust (NYSE:IAU) was 1.1% higher.
• The iShares Silver Trust (NYSE:SLV) was up around 2.7%.

Gold and silver mining ETFs also were recovering from Monday’s sharp losses.

• The Market Vectors Gold Miners ETF (NYSE:GDX) was up around 1.2%.
• The Market Vectors Junior Gold Miners ETF (NYSE:GDXJ) was around 2.4% higher.
• The Global X Silver Miners ETF (NYSE:SIL) was 1.4% higher.

Shares of gold miners were moving up sharply as well, with NovaGold Resources surging but volatile.

• Agnico-Eagle Mines (NYSE:AEM) was nearly 1.9% higher.
• Barrick Gold Corp. (NYSE:ABX) was around 1.6% higher.
• Goldcorp (NYSE:GG) was up around 1.8%.
• Newmont Mining Corp. (NYSE:NEM) was around 0.8% higher.
• NovaGold Resources was swinging widely, but up sharply, showing gains ranging between 3% and more than 5%.

Silver miners’ shares weren’t participating in the recovery.

• Coeur d’Alene Mines Corp. (NYSE:CDE) was around 0.5% lower.
• Hecla Mining (NYSE:HL) was down around 1%.
• Pan American Silver Corp. (NASDAQ:PAAS) was around 0.3% lower.
• Silver Wheaton Corp. (NYSE:SLW) was flat to down slightly.
• Silver Standard Resources Inc. (NASDAQ:SSRI) was down between 0.2% and 0.5%.

As of this writing, Andrew Burger did not hold a position in any of the aforementioned stocks.