Gold Settles Under $1,600, Silver Near $29
By Eric McWhinnie | May 10, 2012 5:19 AM EST
Both precious metals struggled as eurozone officials debated delaying a 5.2 billion euro payment to Greece, due to political backlash. Greece owes a 3.3 billion euro payment to the European Central Bank next week. However, gold and silver both bounced off their intra-day lows as an agreement was reached.
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Reuters reports, “After a conference call, the board of the European Financial Stability Facility, the 700 billion euro bailout fund administered by the 17 countries that use the euro, agreed to make the scheduled payment, which will allow Greece to meet near-term bond redemptions and other obligations.”
In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) and iShares Silver Trust (NYSEARCA:SLV) both declined about 1.04 percent. However, several gold miners (NYSEARCA:GDX) climbed higher as value investors came into the market. Newmont Mining (NYSE:NEM) jumped 4 percent, while Barrick Gold (NYSE:ABX) gained 2.8 percent. Silver investments such as Silver Wheaton Corp. (NYSE:SLW) increased 2.5 percent, while Hecla Mining (NYSE:HL) dropped .98 percent.
Shares of Endeavour Silver (NYSE:EXK) jumped more than 5 percent after reporting strong financial results for the first-quarter. Adjusted earnings surged 35 percent to $19.6 million (22 cents per share), compared to $14.5 million (18 cents per share) a year earlier. Revenues increased 39 percent to $49 million.
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Disclosure: Long EXK, AG, HL, PHYS
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