Gold Hits 5-Month High, GDX Has Best Month Since April 2010

Precious metals extended their gains Friday afternoon after Ben Bernanke reiterated the Federal Reserve’s commitment to “provide additional policy accommodation as needed to promote a stronger economic recovery.”

Gold futures surged as much as $34.70, or 2.1%, to $1,691.80 per ounce – their highest level since March 27th.  In doing so, the yellow metal stretched its advance in August to 4.8% – marking its best month since January of this year.

Silver futures fared even better, climbing $1.19, or 3.9%, to $31.59 per ounce – their best level since April 23rd.  With its move higher today, gold’s sister precious metal extended its monthly gain to 13.0% – its largest such advance since January as well.

As for gold stocks, the Market Vectors Gold Miners ETF (GDX) jumped as much as $2.04, or 4.4%, to $48.06 per share. The rally marked the GDX’s best single-day gain since a 6.9% rise on June 1st and brought its advance in August to 12.3% – its best monthly gain since it surged 13.7% in April of 2010.

In afternoon trading, three of the best-performing large-cap gold miners were Agnico-Eagle Mines (AEM), Kinross Gold (KGC), and Randgold Resources (GOLD).  AEM climbed by 4.9% to $48.28, KGC by 5.1% to $8.94, and GOLD by 4.9% to $102.78 per share.