Gold and Silver Bounce Off Lows as Euro Climbs Above $1.31

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On Thursday, gold (NYSEARCA:GLD) futures for April delivery edged 30 cents higher to settle at $1,728.40 per ounce, while silver (NYSEARCA:SLV) futures declined 4 cents to close at $33.37.

The euro turned higher against the U.S. dollar (NYSE:UUP) as rumors speculate that some of Europe’s national central banks may swap their Greek debt holdings for new Greek bonds.  The euro climbed to as high as $1.3146 on Thursday.  Greece is still without a final debt deal, but investors remain hopeful that Greece will avoid an official default.

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“So long as the talks seem close to a conclusion and a March 20 default looks unlikely, the euro should find some buyers with a $1.29 handle and push back towards $1.32 – $1.33, said Sean Callow, an analyst at Westpac Global Markets. “It is hard to see much beyond this area, however.”

Despite heading lower in morning trading, many precious metal investments bounced back as the dollar declined.  The SPDR Gold Trust (NYSEARCA:GLD) traded as low as $166.17 per share, but rebounded to $168 in afternoon trading.  The iShares Silver Trust (NYSEARCA:SLV) also rebounded from $31.82 to $32.55.  Gold miners (NYSEARCA:GDX) such as Yamana Gold (NYSE:AUY) and Newmont Mining (NYSE:NEM) increased 2.9 percent and 1.7 percent, respectively.  Meanwhile, silver miners (NYSEARCA:SIL) such as Hecla Mining (NYSE:HL) and First Majestic (NYSE:AG) jumped more than 3 percent.

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Shares of Barrick Gold Corp. (NYSE:ABX) gained 1.75 percent, despite reporting mostly flat earnings.  The company earned $959 million (96 cents per share), compared to $961 million (96 cents per share) a year earlier.  Revenues increased from $3.01 billion to $3.79 billion in the same time period.  Analysts had projected revenues of about $3.73 billion.

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To contact the reporter on this story: Eric McWhinnie at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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