Gold and Silver Shake Off Stronger U.S. Dollar
By Eric McWhinnie | November 6, 2012 7:18 AM EST
Both precious metals bounced higher, despite a stronger U.S. dollar on more eurozone fears. The European Central Bank is reviewing its actions on whether or not it treated Spanish government debt too generously in regards to collateral for loans.
Don’t Miss: Will Central Banks Hit Amex Gold Limit?
The WSJ reports, “The issue involves about 80 billion euros in Spanish Treasury bills the ECB accepted as collateral for its loans. The ECB applies different discounts, or haircuts, to collateral based on the quality of the asset being posted. The Treasury bills under question were given the highest collateral rating, but Welt am Sonntag’s research suggests many of the securities should have been given a lower rating, meaning more bills would have needed to be posted to obtain the same amount of ECB credit.”
In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) increased 0.40 percent, while the iShares Silver Trust (NYSEARCA:SLV) jumped 0.80 percent. Gold miners (NYSEARCA:GDX) such as Newmont Mining (NYSE:NEM) and Barrick Gold (NYSE:ABX) both fell about 0.40 percent. Silver companies such as First Majestic Silver (NYSE:AG) and Endeavour Silver (NYSE:EXK) dropped 1.90 percent and 0.80 percent, respectively.
Investor Insight: Is Barrick Gold a Buy After Earnings?
If you would like to receive professional analysis on miners and other precious metal investments, we invite you to try our premium service free for 14 days.
Disclosure: Long EXK, AG, HL, PHYS
Most Popular Slideshows
- Prince William & Kate Middleton Caught Flirting In A Countryside Dinner Date [PHOTOS]
- Prince William & Kate Middleton Boards London Train in Casual Disguise, Royal Couple’s Incognito Plan A Huge Hit [PHOTOS]
- Angelina Jolie & Brad Pitt Heads to Malta For New Movie After A Whirlwind French Wedding [PHOTOS]
- 2014 US Open: Hottest Male Tennis Players To Watch [PHOTOS]
Join the Conversation
- Pricey iPhone 6 on Release Date Likely but with 3X Retina Resolution & Mobile Payment Service – Reports
- 5.5-Inch iPhone 6 is iPhone Air on Sept 19 Release Date: 5 Things to Consider Before Buying
- Google Nexus 8 Confirmed as HTC T1 aka Volantis/Flounder with Freshly-Leaked Specs & Features – Reports
- PlayStation 4 Killing Xbox One Costing Microsoft Millions But It's Fine
- Europe, US Next on ISIS’ Hit List, Says Saudi King; Seized ISIS Laptop Reveals Terrifying Bio-Warfare Plans
- iPhone 6 On Release Date To Feature Qualcomm MDM9625M LTE, 1GB RAM, Mobile Payment Deal With AMEX, 1334x750 Display
- Google Can Kill Samsung with Android KitKat and Android One: Here's How