Miners Extend Rally Even As Gold Futures Take A Breather (GFI, SLV, PAAS, SLW, SVM, ABX, AU, GG, KGC)
Shares of Gold Fields (GFI) are higher by 2% as gold and silver miners continue to surge higher despite some lethargic action in gold futures today that has the yellow metal in danger of halting an eight-day winning streak. Diminishing chances for a third round of quantitative easing from the Federal Reserve and a stronger dollar are hampering gold prices today, but those factors aren’t keeping the Gold and Silver Stocks Index from a 1% gain. The Index has soared 15% in the past month.
The Fed’s June industrial production report, while below expectations, showed increased activity last month, and that may be lending a hand to silver prices. Roughly half of all silver produced is consumed for industrial purposes. iShares Silver Trust (SLV), the largest physical silver ETF, is up 1% while miners Pan American Silver (PAAS), Silver Wheaton (SLW) and Silvercorp Metals Inc (SVM) are all higher by 2%.
Following news from Standard & Poor’s that it could cut its credit rating on the U.S. later this month if no agreement on the debt ceiling is reached, analysts are speculating a deal could be reached in the near-term, Barron’s reported. That could pressure the dollar and boost gold and silver as a result. The Treasury Department has set an Aug. 2 deadline for raising the debt ceiling.
Investors can track the Gold and Silver Stocks Index for performance trends and a suite of other metrics at tickerspy.com.
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