Gold, Silver Mining Stocks Up As Metal Prices Soar
September 8th, 2009
Shares of gold and silver mining companies rose on Thursday as the price of the precious metals rallied, with gold hovering close to the psychological barrier of $1,000 per ounce.
Analysts said that flight-to-quality buying has supported gold this week, as the metal is used as a safe haven in times of economic and geopolitical uncertainties.
“The equities markets look a little shaky to start this week. There is an element of nervousness, which was enough to spur gold buying,” said Bill O’Neill, managing partner of New Jersey-based LOGIC Advisors.
In afternoon trading on the New York Stock Exchange, shares in Canada’s Barrick Gold, the world’s largest gold producer, were 4.9 percent higher at $39.75. Denver-based Newmont Mining’s stock was up 4.5 percent at $45.80.
The gold bugs index .HUI was up 6.2 percent and in Canada, the S&P/TSX global gold index .SPTTGD, which tracks major gold stocks traded on several exchanges, rose 4.9 percent.
Silver miner Coeur d’Alene saw its stock soar 10.9 percent to $17.18.
The markets reacted as December gold rose to $13.10, or 1.3 percent, at $991.60 an ounce on the COMEX division of the New York Mercantile Exchange.
U.S. silver futures rallied to a three-month high above $16 an ounce, fueled by gold’s sharp gains and increased investment buying, traders said.
U.S. silver for December delivery was up 69.5 cents, or 4.5 percent, at $16.060 an ounce on the COMEX. The session high was $16.105 an ounce, which marked the highest price since June 3.
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