Gold and Silver Post Huge Turnaround
On Monday, gold (NYSEARCA:GLD) futures for June delivery, the most active contract, jumped $19.40 to close at $1,384.10 per ounce, while silver (NYSEARCA:SLV) futures for July gained 23 cents to finish at $22.58.
Although the price of gold futures briefly touched $1,336 per ounce, they rebounded sharply to avoid closing lower for the eighth consecutive session. Silver futures hit as low as $20.25 per ounce, which caused some market commentators to declare the end for silver, but the precious metal also made a strong reversal.
The rebound in precious metals occurred as the U.S. dollar index edged lower and stocks failed to climb higher. Federal Reserve Bank of Chicago President Charles Evans, one of the biggest supporters of easy money policies, also said in a speech that the central bank currently has the “appropriate monetary policy in place.”
By the end of the day, the SPDR Gold Trust (NYSEARCA:GLD) jumped more than 3 percent, while the iShares Silver Trust (NYSEARCA:SLV) surged more than 4 percent. Gold miners (NYSEARCA:GDX) such as Barrick Gold (NYSE:ABX) and Yamana Gold (NYSE:AUY) both gained about 7 percent. First Majestic Silver (NYSE:AG) ripped nearly 12 percent higher.
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Disclosure: Long EXK, AG, HL, PHYS