Gold and Silver Climb Higher as Equities Sink Again
By Eric McWhinnie | November 9, 2012 8:31 AM EST
Both precious metals logged gains, despite central banks in Europe and England keeping main interest rates unchanged. The European Central Bank decided to keep its rate at 0.75 percent, while the Bank of England is holding steady at 0.5 percent. The BOE also said it will not be adding to its 375 billion pound quantitative easing program.
Don’t Miss: Is Barrick Gold a Buy After Earnings?
While the ECB did not lower its interest rate, the central bank’s president Mario Draghi continued to jawbone markets about bond buying. “We are ready to undertake” Outright Monetary Transactions, “which will help to avoid extreme scenarios,” he said at a press conference in Frankfurt, according to Bloomberg. “The risks surrounding the economic outlook remain on the downside” and underlying inflation pressures “should remain moderate.”
By the end of the day, the Dow Jones Industrial Average closed 121 points in the red, while the S&P 500 and Nasdaq dropped more than 1.0 percent. However, the SPDR Gold Trust (NYSEARCA:GLD) gained nearly 1.0 percent, while the iShares Silver Trust (NYSEARCA:SLV) increased 1.8 percent. Gold miners (NYSEARCA:GDX) such as Yamana Gold (NYSE:AUY) and Agnico Eagle Mines (NYSE:AEM) both closed more than 1 percent higher. Meanwhile, First Majestic Silver (NYSE:AG) and Hecla Mining (NYSE:HL) jumped 3.4 percent and 2.5 percent, respectively.
Investor Insight: Is Gold Set to Benefit from Obama’s Re-Election?
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
- Kate Middleton Suffocated in Kensington Palace, Queen Elizabeth Reported War With The Duchess [PHOTOS]
- Brad Pitt Still in Love with Ex-Wife Jennifer Aniston, Staying with Angelina Jolie for Sake of Kids, Claims Brad's Psychic
- British Style Icon Kate Middleton Fashion Talk With Camilla Parker-Bowles Daughter-In-Law [PHOTOS]
- Transfer News: Manchester United's Possible Transfer Options For This Season
Join the Conversation
- Worldwide Appetite for Gold Slumps 16% in 2Q 2014 – WGC
- Gold in China: 127-Tonne Gold Reserves Tapped in Xinjiang
- Global Markets Overview – July 15, 2014
- Honduran Gold Mine Caves in; 8 Rescued, 3 Remain Trapped (PHOTOS)
- Chinese Govt Tightens Control on Gold to Curb Imports, Could Drop 400T from 2013 – Report
- James Foley Beheading Video Has Play-Acting Portions – Video Experts Say
- Apple iPhone 6 Release Date, iPhone 6C or 6L Anticipation: Three Things Should Matter To New Phone Shoppers
- Upcoming Sony Xperia Z3 With Dual-SIM Support Gets Approved In China; Full Specifications Revealed; Amber-Coloured Xperia Z3 Tipped
- More Nexus 8/Nexus 9 Release Confirmed with More Leaks and Out of Stock Nexus 7 and 10
- James Foley: Release of Beheading Video by ISIS Meant to Attract More Recruits to Join the Cause – Intelligence
- 2015 Ford Mustang: Right-Hand Drive Pony Car To Be Available In Australia Next Year
- Google Works on Powering Up Chromebook Line to Kill Competitors, Nvidia Joins with Acer for New Killer Laptop