Gold and Silver Hold Firm After Draghi Drama

On Thursday, gold (NYSEARCA:GLD) futures for August delivery increased $7 to settle at $1,615.10 per ounce, while silver (NYSEARCA:SLV) futures edged 2 cents lower to close at $27.45.

Precious metals received support today as the euro currency received a short-cover rally and sent the U.S. dollar lower. European Central Bank President Mario Draghi pledged today that the ECB “is ready to do whatever it takes to preserve the euro, and believe me, it will be enough.”

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He continued to explain that the central bank could fight the recent surge in high government borrowing costs, as seen on Spanish and Italian bonds. “To the extent that the size of the sovereign premia (borrowing costs) hamper the functioning of the monetary policy transmission channels, they come within our mandate,” Draghi explained, according to Reuters.

In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) and iShares Silver Trust (NYSEARCA:SLV) both gained 0.80 percent. Gold miners (NYSEARCA:GDX) such as Yamana Gold (NYSE:AUY) and Goldcorp (NYSE:GG) jumped 3.92 percent and 5.15 percent, respectively. Meanwhile, Silver Wheaton (NYSE:SLW) and First Majestic (NYSE:AG) increased 2.3 percent and 1.4 percent, respectively.

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Disclosure: Long EXK, AG, HL, PHYS