Gold and Silver Climb Higher as Equities Sink Again

  • Like on Facebook
  • Share on Google+
  • Share on LinkedIn

On Thursday, gold (NYSEARCA:GLD) futures for December delivery increased $12.00 to settle at $1,726 per ounce, while silver (NYSEARCA:SLV) jumped 58 cents to close at $32.24.

Both precious metals logged gains, despite central banks in Europe and England keeping main interest rates unchanged. The European Central Bank decided to keep its rate at 0.75 percent, while the Bank of England is holding steady at 0.5 percent. The BOE also said it will not be adding to its 375 billion pound quantitative easing program.

Don’t Miss: Is Barrick Gold a Buy After Earnings?

While the ECB did not lower its interest rate, the central bank’s president Mario Draghi continued to jawbone markets about bond buying. “We are ready to undertake” Outright Monetary Transactions, “which will help to avoid extreme scenarios,” he said at a press conference in Frankfurt, according to Bloomberg. “The risks surrounding the economic outlook remain on the downside” and underlying inflation pressures “should remain moderate.”

By the end of the day, the Dow Jones Industrial Average closed 121 points in the red, while the S&P 500 and Nasdaq dropped more than 1.0 percent. However, the SPDR Gold Trust (NYSEARCA:GLD) gained nearly 1.0 percent, while the iShares Silver Trust (NYSEARCA:SLV) increased 1.8 percent. Gold miners (NYSEARCA:GDX) such as Yamana Gold (NYSE:AUY) and Agnico Eagle Mines (NYSE:AEM) both closed more than 1 percent higher. Meanwhile, First Majestic Silver (NYSE:AG) and Hecla Mining (NYSE:HL) jumped 3.4 percent and 2.5 percent, respectively.

Investor Insight: Is Gold Set to Benefit from Obama’s Re-Election?

If you would like to receive professional analysis on miners and other precious metal investments, we invite you to try our premium service free for 14 days.

Disclosure: Long EXK, AG, HL, PHYS

More Articles About:

To contact the reporter on this story: staff.writers@wallstcheatsheet.com To contact the editor responsible for this story: editors@wallstcheatsheet.com

Yahoo Finance, Harvard Business Review, Market Watch, The Wall St. Journal, Financial Times, CNN Money, Fox Business