Gold and Silver Close Lower After Germany’s High Court Ruling
Both precious metals traded higher on news from Europe, but retreated later in the day. Germany’s Constitutional Court, its highest court, approved the country to ratify the eurozone’s new rescue fund. However, it gave power to the parliament to veto any future increases in the size of the bailout fund.
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The euro climbed to as high as $1.2936, its highest level since May, as the ruling provided more hope for the market. “I think it should be seen as a positive step in the long road to solving the eurozone debt crisis,” said Henk Potts, market strategist at Barclays Wealth. Germany’s liability will be limited to 190 billion euros.
In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) traded flat, while the iShares Silver Trust (NYSEARCA:SLV) edged 0.65 percent lower. However, gold miners (NYSEARCA:GDX) such as Yamana Gold (NYSE:AUY) and Newmont Mining (NYSE:NEM) managed to jump 1.64 percent and 0.77 percent, respectively. Silver names such as Hecla Mining (NYSE:HL) and Silver Wheaton (NYSE:SLW) also edged higher.
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Disclosure: Long EXK, AG, HL, PHYS