Gold and Silver JUMP to New Multi-Month Highs
Both precious metals climbed to fresh multi-month highs on more tension in the Middle East and hopes of central bank intervention in Europe. Jorg Asmussen, the German member of the European Central Bank’s executive board, provided support for the bond rescue plan by Mario Draghi.
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Asmussen said, “A currency can only be stable if its future existence is not in doubt.” He also confirmed that bond purchases may be “unlimited” in size, according to The Telegraph. The U.S. dollar index, which compares the greenback against six other fiat currencies, fell to as low as 81.79, its lowest level since the beginning of July. Meanwhile, the euro jumped nearly 1 percent.
By the end of the day, the SPDR Gold Trust (NYSEARCA:GLD) closed 1 percent higher, while the iShares Silver Trust (NYSEARCA:SLV) jumped 1.5 percent. Gold miners (NYSEARCA:GDX) such as Yamana Gold (NYSE:AUY) and Goldcorp (NYSE:GG) gained 3.1 percent and 2.19 percent, respectively. Meanwhile, silver miners (NYSEARCA:SIL) such as First Majestic (NYSE:AG) and Endeavour Silver (NYSE:EXK) both jumped more than 3 percent.
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Disclosure: Long EXK, AG, HL, PHYS