Gold and Silver Rise as Investors Seek Safe-Havens

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On Tuesday, gold (NYSEARCA:GLD) futures for June delivery increased $16.80 to settle at $1,660.70 per ounce, while silver (NYSEARCA:SLV) futures gained 15.5 cents to close at $31.68.

Both precious metals increased along with the U.S. dollar (NYSE:UUP) as safe-haven plays were popular among traders today. Spain’s cost of borrowing is becoming more of a concern as interest rates neared 6 percent on Tuesday. It was the highest level for Spain’s 10-year note since last December.

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U.S. Treasury 10-year notes fell below 2 percent for the first time in over a month. It was the fifth consecutive session of rising bond prices. Today’s three-year note auction also attracted the highest amount of indirect buying since August. The WSJ reports, “So-called indirect bidders, often a reflection of overseas interest, scooped up 40% of the $32 billion offering. That compares to the 35% average over the last four auctions of this maturity.”

In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) increased 1.15 percent, while the iShares Silver Trust (NYSEARCA:SLV) gained .70 percent. Gold miners (NYSEARCA:GDX) such as Yamana Gold (NYSE:AUY) and Newmont Mining (NYSE:NEM) both jumped more than 2 percent. Silver miners (NYSEARCA:SIL) such as Silvercorp Metals Inc. (NYSE:SVM) and Endeavour Silver (NYSE:EXK) increased 3.3 percent and 1.5 percent, respectively.

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Disclosure: Long EXK, AG, HL, PHYS

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