Gold Declines, But Silver Reverses Losses
Both precious metals remained in check as the U.S. dollar index climbed higher on the back of renewed eurozone fears. Austerity measures and sky-high unemployment rates still have protestors rioting in Athens and Madrid. Furthermore, the Spain’s borrowing costs increased as yields on 10-year government bonds jumped back above 6 percent.
CNN reports, “The Greek government is seeking new ways to implement budget cuts of 11.5 billion euros ($14.49 billion) to ensure the country receives another international bailout installment in October. The one-day strike in protest against further cuts was organized by the two biggest unions in the country, with rallies in a number of cities across Greece, including Patras, west of Athens.” The recent developments sent the euro currency below $1.29, its lowest level in about two weeks.
By the end of the day, the SPDR Gold Trust (NYSEARCA:GLD) closed 0.56 percent lower, while the iShares Silver Trust (NYSEARCA:SLV) managed to reverse losses and close 0.58 percent higher. Gold miners (NYSEARCA:GDX) such as Yamana Gold (NYSE:AUY) and Goldcorp (NYSE:GG) increased 0.49 percent and 0.85 percent, respectively. First Majestic Silver (NYSE:AG) closed 0.77 percent higher, but Silver Wheaton (NYSE:SLW) and Endeavour Silver (NYSE:EXK) both declined about 1 percent.
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Disclosure: Long EXK, AG, HL, PHYS