Gold was trading in a $1,692-$1,716 range in London and early New York trading Monday, having spiked from around $1,662 to the $1,690 level in electronic trading and Asia-Pacific trading overnight.
Safe-haven buying was on investors and traders’ minds as the European Central Bank bought Italian and Spanish bonds on a massive scale to stave off another crisis, according to market reports. Rumors that France’s debt might be on the verge of a downgrade, along with S&P downgrading the credit rating of the United States from AAA to AA+, added to demand for precious metals.
Gold was set at $1,693 at the London PM fix and was trading at $1,704.60 Bid, $1,705.60 Ask on Monday morning. Silver was set at $39.86 in the London AM and was trading at $39.53 Bid, $39.63 Ask.
Gold and silver trusts were sharply higher early Monday.
- The SPDR Gold Trust (NYSE:) was up nearly 2.5%.
- The iShares Gold Trust (NYSE:) was 2.47% higher.
- The iShares Silver Trust (NYSE:) was up more than 3%.
Gold and silver mining ETFs were mixed.
- The Market Vectors Gold Miners ETF (NYSE:) was moving around 0.9% higher.
- The Market Vector Junior Gold Miners ETF (NYSE:) was flat to slightly down.
- The Global X Silver Miners ETF (NYSE:) was trading around 3.6% lower.
Shares of gold miners were broadly higher, with NovaGold Resources the exception.
- Agnico Eagle Mines (USA) (NYSE:) was moving between gains of 2% and 2.3%.
- Barrick Gold Corp. (NYSE:) was trading 1.15% higher.
- Goldcorp (NYSE:) was moving up around 2.2%.
- Newmont Mining Corp. (NYSE:) was up around 2.9%.
- *NovaGold Resources (USA) (AMEX:) was down more than 1.3%.
Silver mining shares were sharply lower and volatile.
- Coeur D’Alene Mines Corp. (NYSE:) was down sharply trading around 7.2% lower.
- Hecla Mining (NYSE:) was trading between 1.9% and 2.4% lower.
- Pan American Silver Corp. (USA) (NASDAQ:) was down around 2.4%.
- Silver Wheaton Corp. (USA) (NYSE:) was moving lower, down between 2.6% and 2.9%.
- Silver Standard Resources Inc. (USA) (NASDAQ:) was around 1.9% lower.
The author does not hold positions in any of the above-mentioned investments.
